The US dollar has strengthened following comments from Federal Reserve Chairman Jerome Powell regarding interest rate stability after last week's monetary policy decision, where he remained confident in a potential rate cut within the year.

Nael Kashkari, President of the Federal Reserve Bank of Minneapolis, expressed additional concerns about the persistent inflationary pressures and warned that maintaining high interest rates remains necessary.

Meanwhile, the Canadian dollar may find support from April's employment data, which will be released on Friday. The Canadian labor market is expected to expand due to wage increases, although unemployment rates are also expected to rise accordingly.