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• USD/CAD posts modest gains around 1.4375 in Friday’s early Asian session. 
• Trump said he wanted the Fed to lower interest rates immediately. 
• Canada's Retail Sales were flat in November, weaker than expected. 

The USD/CAD pair trades with mild gains near 1.4375 during the early Asian session on Friday. Investors await further clarity on tariff announcements by US President Donald Trump. Later on Friday, the flash US S&P Global Manufacturing and Services Purchasing Managers Index (PMI) for January will be in the spotlight. 

Late Thursday, Trump said he wants the US Federal Reserve (Fed) to cut interest rates “immediately,” adding that he understands monetary policy better than those charged with setting it. Trump's remarks came before the Fed's monetary policy meeting scheduled for January 28 and 29, with expectations the US central bank will hold rates steady. 

"I think Trump's comments at the World Economic Forum today helped euro-dollar recover and put some pressure on the (U.S.) dollar more broadly," said Silver Gold Bull Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull.

On the Loonie front, Canada’s Retail Sales were flat on a monthly basis in November versus 0.6% prior, Statistics Canada reported on Thursday. This reading came in weaker than the 0.2% expected. 

Meanwhile, a fall in crude oil prices might exert some selling pressure on the commodity-linked Canadian Dollar (CAD) and cap the downside for the pair. Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.

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