The USD/CAD pair remains stable around the 1.3800 level, holding onto gains from Thursday during the early Asian session on Friday. The strength of the US Dollar (USD) plays a crucial role in maintaining this position, especially following the release of a higher-than-expected Producer Price Index (PPI) for July from the United States.

The positive PPI data supports the notion of continued strength in the US economy, impacting the USD/CAD positively as traders await the upcoming US retail sales data.

As the market gears up for key economic indicators, fluctuations in USD/CAD are likely to occur, driven by data releases that could influence monetary policy expectations.

Traders are advised to stay alert as developments unfold in the currency market, which may have significant implications for the USD/CAD performance in the near term.