- USD/CAD continues Friday’s thin drift near the 1.3500 handle.
- Canada wholesale trade likely fell 0.6% in January.
- US New Home Sales rose 1.5% vs 7.2% previous, Durable Goods due tomorrow.
USD/CAD is stuck in a slow drift near 1.3500 as markets gear up for the week. Economic data remains thin on Monday, and traders will be looking ahead to Tuesday’s US Durable Goods Orders for January, as well as Wednesday’s US Gross Domestic Product (GDP) growth for the fourth quarter.
Canada is predominantly underrepresented on the economic calendar until Thursday’s Canadian GDP Q4 performance. StatCan noted on Monday that Canadian wholesale trade likely fell in January with January’s Canadian manufacturing sales seeing a slight bump.
Daily digest market movers: USD/CAD gears up for a key data week with easy Monday
- According to StatCan Flash Estimate, Canada’s January wholesale trade likely fell by 0.6% MoM, while January manufacturing sales likely rose 0.4% MoM.
- US New Home Sales Change rose 1.5% MoM in January compared to the previous month’s 7.2% (revised from 8.0%).
- US New Home Sales in January 661K versus 680K, previous 651K (revised from 664K).
- Tuesday’s US Durable Goods Orders for January is forecast to decline 4.8% MoM, previous print 0.0%.
- Canada’s Current Account is expected to record -1.25 billion on Wednesday, -3.22 billion previous.
- US fourth-quarter GDP growth forecast to hold steady at 3.3% for the year ended 4Q.
- Canada’s Q4 GDP slated for Thursday, forecast to rebound to 0.8% QoQ versus the previous -1.1%.
Canadian Dollar price today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.26% | -0.06% | 0.03% | 0.43% | 0.16% | 0.22% | -0.08% | |
| EUR | 0.25% | 0.19% | 0.28% | 0.68% | 0.42% | 0.47% | 0.17% | |
| GBP | 0.04% | -0.22% | 0.08% | 0.48% | 0.21% | 0.27% | -0.03% | |
| CAD | -0.03% | -0.29% | -0.10% | 0.41% | 0.12% | 0.19% | -0.12% | |
| AUD | -0.45% | -0.70% | -0.49% | -0.40% | -0.27% | -0.21% | -0.51% | |
| JPY | -0.16% | -0.43% | -0.18% | -0.13% | 0.28% | 0.07% | -0.25% | |
| NZD | -0.23% | -0.48% | -0.27% | -0.19% | 0.21% | -0.06% | -0.28% | |
| CHF | 0.06% | -0.20% | 0.01% | 0.09% | 0.50% | 0.22% | 0.29% |
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: USD/CAD sees technical floor near 1.3500 as pair churns
USD/CAD near-term technical action continues to see a sideways grind as investors grapple with picking a meaningful direction. 1.3500 remains a key technical level, keeping intraday bids magnetized to the major price handle. USD/CAD has cycled 1.3500 in a rough sideways channel since February 5.
Daily candlesticks remain stuck to the 200-day Simple Moving Average (SMA) at 1.3478 just beneath 1.3500. USD/CAD remains stuck in the middle ground between December’s lows near 1.3177 and last November’s early peak near 1.3900.
USD/CAD hourly chart
USD/CAD daily chart
Canadian Dollar FAQs
What key factors drive the Canadian Dollar?
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.
How do the decisions of the Bank of Canada impact 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.
How does the price of Oil impact the Canadian Dollar?
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.
How does inflation data impact the value of the Canadian Dollar?
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.
How does economic data influence the value of 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 gathers fresh upside traction and approaches 1.0580
Following an early dip to a new 2024 low at 1.0495, EUR/USD manages to regain some balance and retests the area of daily peaks near 1.0580 as the US Dollar's initial uptick seems to have run out of steam.
GBP/USD reclaims the 1.2700 barrier and above
In line with the rest of its risk-related peers, GBP/USD leaves behind the initial drop to multi-month lows near 1.2630 and attempts a move beyond 1.2700 the figure amidst renewed weakness in the Greenback.
Gold trims early losses hovers around $2,575
The loss of momentum in the US Dollar and the retracement in US yields across the curve allow Gold prices to pick up some upside traction and revisit the $2,570 zone per ounce troy, trimming part of their early losses.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.