The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to its weekly gain, as few new details on proposed U.S. tariffs led to broad-based declines for the American currency.

The Fed is expected to keep interest rates on hold but the larger story unfolding will be how the central bank confronts early moves by Trump.

The Canadian dollar steadied against its U.S. counterpart on Thursday as investors weighed U.S. President Donald Trump's comments at the World Economic Forum and preliminary domestic data showed retail sales jumping in December.