- USD/CAD stable despite strong US Dollar, buoyed by rising WTI oil prices supporting the Canadian Dollar.
- Hurricane Francine escalates oil prices; US producers evacuate Gulf Coast staff, reducing production.
- Growing speculation about a BoC rate cut due to increasing Canadian unemployment; upcoming US CPI data to influence Fed's decisions.
The USD/CAD was virtually unchanged during the North American session and traded at around 1.3560 as buyers failed to crack the strong resistance seen at the 200-day moving average (DMA) at 1.3588.
USD/CAD trades near 1.3560, as higher oil prices limit the pair’s upside
Market sentiment remains upbeat as Wall Street registers gains, while a strong US Dollar failed to push the USD/CAD toward the 1.3600 figure, mainly due to higher oil prices.
West Texas Intermediate (WTI), the US crude oil benchmark, has risen on fears that hurricane Francine is about to hit the Louisiana coast. According to Reuters, “Oil and gas producers along the Gulf Coast started evacuating staff and curbing drilling to prepare for Tropical Storm Francine.”
The Canadian Dollar has weakened since the Bank of Canada (BoC) was the first major central bank to slash rates amid fears of an economic slowdown. Last week, Canada’s unemployment rate climbed to 6.6%, the highest in seven years, excluding the two years of the COVID-19 pandemic.
BoC Governor Tiff Macklem will cross wires on Tuesday. Last week, he said a more significant rate cut is possible if the economy needs a boost.
On the US front, investors are eyeing the release of the Consumer Price Index (CPI) in August, which is expected to confirm that the Federal Reserve might begin to cut rates at the upcoming September 17-18 monetary policy meeting.
USD/CAD Price Forecast: Technical outlook
From a technical perspective, the major is set to continue the ongoing downtrend unless the USD/CAD climbs past the 200-DMA at 1.3588, which will expose the 1.3600 figure. Further upside will be seen once cleared, with the following key resistance zone being 1.3618, the highs of August 22 and 23, and the confluence of the 50 and 100-DMA at around 1.3667/75.
Conversely, on the path of least resistance, the USD/CAD first support would be 1.3550. A breach of the latter will expose 1.3500, followed by the September 6 through at 1.3465.
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 Swiss Franc.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.42% | 0.42% | 0.57% | -0.05% | 0.12% | 0.44% | 0.51% | |
EUR | -0.42% | -0.05% | 0.21% | -0.47% | -0.35% | 0.04% | 0.07% | |
GBP | -0.42% | 0.05% | 0.11% | -0.41% | -0.30% | 0.06% | 0.11% | |
JPY | -0.57% | -0.21% | -0.11% | -0.61% | -0.43% | -0.11% | 0.14% | |
CAD | 0.05% | 0.47% | 0.41% | 0.61% | 0.21% | 0.48% | 0.72% | |
AUD | -0.12% | 0.35% | 0.30% | 0.43% | -0.21% | 0.36% | 0.39% | |
NZD | -0.44% | -0.04% | -0.06% | 0.11% | -0.48% | -0.36% | 0.06% | |
CHF | -0.51% | -0.07% | -0.11% | -0.14% | -0.72% | -0.39% | -0.06% |
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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
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 holds above 1.1000 following ECB policy announcements](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD holds above 1.1000 following ECB policy announcements
EUR/USD trades modestly higher on the day above 1.1000 on Thursday as the US Dollar struggles to find demand after August producer inflation data. Meanwhile, the ECB lowered the benchmark interest rate by 25 bps as expected.
![GBP/USD trades above 1.3050 as USD loses strength](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-170160529_XtraSmall.jpg)
GBP/USD trades above 1.3050 as USD loses strength
GBP/USD stays in positive territory above 1.3050 in the American session on Thursday. The improving risk mood and the lower-than-forecast annual PPI reading for August from the US weigh on the USD, helping the pair edge higher.
![Gold climbs to new all-time high above $2,550](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/XAUUSD/gold-bar-and-dollar-bills-42586628_XtraSmall.jpg)
Gold climbs to new all-time high above $2,550
Gold maintains its bullish bias amidst the mild pullback in the Greenback and trades at a new record high at around $2,550. The data from the US showed that the annual producer inflation declined to 1.7% in August from 2.1% in July.
![Crypto Today: Bitcoin, Ethereum gain between 1% and 2% on Thursday, XRP back above $0.53](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_4_XtraSmall.jpg)
Crypto Today: Bitcoin, Ethereum gain between 1% and 2% on Thursday, XRP back above $0.53
BTC is back above $58,000 and ETH hovers around $2,363 at the time of writing. XRP is back above $0.5369 on September 12, gains slightly on the day.
![European Central Bank widely expected to cut interest rates in September](https://editorial.fxstreet.com/images/Macroeconomics/CentralBanks/ECB/ecb-ezb-european-central-bank-frankfurt-68897939_XtraSmall.jpg)
European Central Bank widely expected to cut interest rates in September
The European Central Bank is expected to cut key rates by 25 bps at the September policy meeting. ECB President Christine Lagarde’s presser and updated economic forecasts will be closely scrutinized for fresh policy cues.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.