- Canadian Dollar finds little chart momentum as investors gear up for a busy week.
- Canadian CPI inflation first on the docket, expected to tick up on Tuesday.
- Fed Wednesday brings rate call, updated Dot Plot.
The Canadian Dollar (CAD) is sifting chart paper on Monday, easing into the trading week as investors take a moment to breathe before a full-pull central bank week begins in earnest. The Federal Reserve (Fed) is expected to update its summary of interest rate forecasts, or Dot Plot, on Wednesday. American Purchasing Managers Index (PMI) figures are also due later in the week on Thursday.
Canada is up first this week, with an update to Consumer Price Index (CPI) inflation in February. The Bank of Canada (BoC) will update its Summary of Deliberations on Wednesday, cast in the shadow of the Federal Open Market Committee’s (FOMC) mid-week Press Conference.
Daily digest market movers: Canadian Dollar churns in place as investors await the spark
- The Canadian Raw Material Price Index and Industrial Product Prices for February printed to little effect.
- Canadian Raw Materials prices rose 2.1% in February, a five-month high and a sharp increase from the previous 1.2%.
- Industrial Product Prices rose in February, printing at 0.7% versus the previous month’s -0.1%, the measure’s highest increase in six months.
- Canada’s CPI inflation for February is expected to tick higher on Tuesday, forecast to print at 3.1% YoY versus the previous 2.9%.
- MoM Canadian CPI inflation is expected to bounce to 0.6% from 0.0%.
- The BoC’s Core CPI inflation printed at 2.4% in January, the indicator’s lowest print since May of 2021.
- Wednesday is another FOMC day. Updates to the Fed’s Dot Plot are expected, as well as a Press Conference by Fed Chairman Jerome Powell.
- According to the CME’s FedWatch Tool, rate markets are pricing in nearly equal odds of no rate cut at the Fed’s June rate call, down significantly from 70% odds of a June rate cut at this time last week.
Canadian Dollar price today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.04% | 0.05% | -0.01% | -0.02% | 0.15% | 0.06% | 0.35% | |
| EUR | -0.05% | 0.01% | -0.05% | -0.03% | 0.12% | 0.03% | 0.28% | |
| GBP | -0.05% | 0.00% | -0.05% | -0.03% | 0.12% | 0.03% | 0.29% | |
| CAD | 0.01% | 0.05% | 0.05% | -0.02% | 0.15% | 0.07% | 0.33% | |
| AUD | 0.02% | 0.07% | 0.07% | 0.00% | 0.17% | 0.08% | 0.35% | |
| JPY | -0.16% | -0.12% | -0.05% | -0.16% | -0.17% | -0.08% | 0.18% | |
| NZD | -0.06% | -0.03% | -0.03% | -0.06% | -0.06% | 0.09% | 0.27% | |
| CHF | -0.33% | -0.30% | -0.30% | -0.35% | -0.32% | -0.17% | -0.27% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Technical analysis: Canadian Dollar spins in place on Monday, USD/CAD continues to churn just below 1.3550
The Canadian Dollar (CAD) is broadly flat against most of its major currency peers on Monday as markets ease into the new trading week. The CAD is next to flat against the US Dollar (USD), the Euro (EUR), the Pound Sterling (GBP), the Australian Dollar (AUD) and the New Zealand Dollar (NZD) on Monday. Despite flat markets, the Canadian Dollar is up around a third of a percent against the Swiss Franc (CHF) on the day.
USD/CAD is cycling tightly within familiar technical levels, playing just below 1.3550. Intraday technical support sits at the 1.3500 handle, parked at the 200-hour Simple Moving Average (SMA). A near-term supply zone is priced in between 1.3600 and 1.3580 to cut off any bullish breakouts.
USD/CAD hourly chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD struggles to gain traction and trades below 1.0800 in the American session on Wednesday. Upbeat February Durable Goods Orders data from the US support the US Dollar in the second half of the day, making it difficult for the pair to stage a rebound.
GBP/USD drops to fresh two-week lows below 1.2900
GBP/USD remains under pressure and trades at a fresh two-week low below 1.2900 in the American session on Wednesday. Soft February inflation data from the UK and the Spring Budget delivered by Chancellor Rachel Reeves weigh on Pound Sterling midweek.
Gold clings to modest daily gains above $3,020
Gold fluctuates in a relatively tight range and manages to hold above $3,020 midweek. The precious metal seems to be benefiting from the positive sentiment surrounding the commodities after Copper climbed to a new all-time high earlier in the day.
Bitcoin holds $87,000 as markets brace for volatility ahead of April 2 tariff announcements
Bitcoin (BTC) holds above $87,000 on Wednesday after its mild recovery so far this week. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as the market absorbs the tariff announcements.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.