In European trading hours on Tuesday, the USD/CAD pair approached 1.3760. The Loonie pair saw an increase as the US Dollar (USD) strengthened, thanks to the easing of trade tensions between the European Union (EU) and the United States (US). The US Dollar Index (DXY), which measures the Dollar’s value against six major currencies, rose to about 99.35 after reaching a monthly low of 98.70 on Monday. According to a Reuters report, EU officials have requested that companies within the bloc share information about their plans to invest in the US. This suggests that the EU is taking steps to accelerate the process of reaching a trade agreement with the US. On Monday, trade tensions between the EU and the US also dissipated, and there is growing optimism that a potential bilateral deal will be reached between the two economies. European Trade Commissioner Maros Sefcovic commented at the X meeting that the EU Commission remains committed to pursuing an EU-US deal through constructive efforts at a swift pace. He also stated that they remain in regular communication. While the CAD is weaker against the USD, it has performed better against other major currencies during European trading on Tuesday. The primary event for the Loonie this week will be the release of Q1 and March GDP data on Friday, which is expected to show a modest growth rate of 1.6% annually, compared to the previous figure of 2.6%. Next week, the focus will turn to the Bank of Canada’s (BoC) interest rate decision.