The US dollar (USD) posted marginal gains against the Canadian dollar (CAD) on Tuesday, paring losses after a six-day selloff. The USD/CAD pair has hit a session high just above 1.3660 but remains relatively close to the previous day’s five-week low of 1.3635.
The CAD received an additional boost on Monday as Canadian Consumer Price Index (CPI) figures confirmed that inflation rates accelerated in March, although not as much as the market expected. This gives the Bank of Canada (BoC) some leeway to keep interest rates stable while it waits for more data.
Mixed messages from the US-Iran peace talks
Markets remain relatively calm on Tuesday as they await further developments in peace talks between the US and Iran. A Wall Street Journal report confirmed on Monday that Tehran will finally send a delegation to Pakistan after threatening to withdraw from the peace process following the US military’s seizure of an Iranian ship in the Strait of Hormuz.
Reuters quoted an anonymous US official as saying that “things are moving forward” and that US President Donald Trump could attend the meeting in person or virtually if the parties reach an agreement. However, Iran expressed concern about US demands that cannot be met. Meanwhile, the two-week ceasefire ends on Wednesday and the US president reiterated that it will not be extended.
The US economic calendar will also gain momentum on Tuesday with March retail sales. Consumption is expected to have risen 1.4% after rising 0.6% in February, although the control group, which is more relevant from a gross domestic product (GDP) perspective, is expected to slow to 0.2% from 0.5% in February.
A few hours later, recently appointed Federal Reserve Chairman Kevin Warsh faces his confirmation hearing in the US Senate, with the issue of central bank independence likely to be the main topic.
Economic indicator
Retail Sales (YoY)
The retail sales published by the US Census Bureau Measures the value of total revenue from retail and grocery stores in the United States on a monthly basis. Retail sales measure the change in the total value of goods sold at retail over the course of a year. Retail sales data is widely viewed as an indicator of consumer spending, a key driver of the U.S. economy. A higher than expected result is typically viewed as positive or bullish for the USD, whereas a lower than expected result is viewed as negative or bearish for the USD.
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Next publication:
Tuesday, April 21, 2026, 12:30 p.m
Frequency:
Monthly
Consensus:
–
Previous:
3.7%
Source:
US Census Bureau
Economic indicator
Fed Chair-elect Warsh testifies
Kevin Warsh (April 13, 1970) is an American financier and lawyer who was named by President Donald Trump as the next Chairman of the Federal Reserve, succeeding Jerome Powell. Warsh served on the Fed’s Board of Governors from 2006 to 2011 and was instrumental in the central bank’s response to the financial crisis.
Read more.
Next publication:
Tue, April 21, 2026, 2:00 p.m
Frequency:
Irregular
Consensus:
–
Previous:
–
Source:
Federal Reserve
