During European trading hours on Tuesday, the USD/CAD pair approached 1.3760, as the US Dollar (USD) gained strength following a decrease in trade tensions between the European Union (EU) and the United States (US). The US Dollar Index (DXY), which measures the USD’s performance against six major currencies, increased to around 99.35 after hitting a monthly low of 98.70 on Monday. According to a report from Reuters, EU officials have requested that companies within the bloc share information about their investment plans in the US. This shows that the EU is making efforts to expedite progress towards reaching a trade agreement with the US. This improvement in trade relations between the EU and the US was evident on Monday, as the two economies appeared closer to a potential bilateral deal after comments were made by European Trade Commissioner Maros Sefcovic at a forum. Sefcovic expressed the EU’s commitment to working towards an agreement with the US and stated that there are ongoing discussions between the two parties. While the Canadian Dollar (CAD) is weakening against the US Dollar, it is performing well against other major currencies during European trading hours on Tuesday. This week, the main focus for the Loonie will be on the release of the Q1 and March Gross Domestic Product (GDP) data on Friday. The Canadian economy is expected to have grown at a slower pace of 1.6% on an annualized basis, compared to the previously reported 2.6%. Next week, investors will closely monitor the Bank of Canada’s (BoC) interest rate decision.