• USD/CAD extends its winning streak due to higher yields on US Treasury bonds.
• US Core PCE inflation, the Fed's preferred inflation gauge, is forecasted to decrease to 2.6% YoY from the previous 2.8% reading.
• Canada’s GDP (MoM) is expected to grow by 0.3% in April, against the neutral growth observed in March.

USD/CAD continues to gain ground for the fourth consecutive day, trading around 1.3710 during the European session on Friday. Investors await Friday’s Core PCE Price Index inflation, which is projected to decrease year-over-year to 2.6% from the previous 2.8%. This data is seen as the Federal Reserve's (Fed) preferred inflation gauge.

Higher yields on US Treasury bonds support the US Dollar (USD) and underpin the USD/CAD pair. This could be attributed to the emergence of risk aversion after the US economy showed an expansion on Thursday. Gross Domestic Product Annualized expanded by 1.4% in Q1, slightly higher than the previous reading of 1.3%, but continuing to point to the lowest growth since the contractions in the first half of 2022.