Created
: 2024.11.01
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CAD rally stalls below 1.3945 ahead of the US NFP release
World FX news
Breaking news
USD/CAD rally stalls below 1.3945 ahead of the US NFP release
New
2024.11.01 19:28
2024.11.01 19:28
2024.11.01 19:28
- The US Dollar rally halts below 1.3945 with investors awaiting US employment data.
- Nonfarm Payrolls are expected to have declined significantly, but the unemployment rate is seen steady at 4.1%.
- Oil prices are rallying on speculation that Tehran is preparing a retaliation to Israel.
The Dollar is trading with marginal losses against its Canadian counterpart on Friday. A cautious market mood ahead of the all-important US payrolls report and higher oil prices have halted the pair's rally.
Investors are wary about placing large US Dollar bets ahead of a particularly relevant US Nonfarm Payrolls report, with the Federal Reserve meeting less than one week away.
The US private sector is expected to have created 113K jobs in October, down from 254K in September. It is worth remembering that the impact of hurricanes and recent strikes might have distorted this month's figures and that the unemployment rate will also be observed in case of a significant deviation from the forecasts.
On the other hand, Oil prices are rallying on the back of news reports that Iran would be considering a retaliation against Israel, which is providing additional support to the CAD.
The overall picture, however, shows the US Dollar's upside trend intact, yet with a bearish divergence suggesting the possibility of a downside correction. Resistances are at 1.3945 ahead of the 1400 round level. Immediate support is at 1.3895 and below here, at 1.3840.
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.
Last updated
: 2024.11.01
Related articles
EUR/GBP Price Forecast: Reaches crossroads after completing abc move and pulling back
31 minutes agoGBP/USD: BoE outlook less certain - Scotiabank
2024.11.01 21:25EUR/USD: Spreads widen modestly - Scotiabank
2024.11.01 20:56USD/CAD: Little changed on the day - Scotiabank
2024.11.01 20:39CNY: Stabilization already working - Commerzbank
2024.11.01 20:35USD mixed to firmer ahead of jobs - Scotiabank
2024.11.01 20:32
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/GBP Price Forecast: Reaches crossroads after completing abc move and pulling back
EUR/GBP pulls back after peaking in the 0.8440s. On Tuesday it bounced off key support (gray dashed line) at multi-year lows and surged over a penny higher.
New
2024.11.01 22:06GBP/USD: BoE outlook less certain - Scotiabank
The Pound Sterling (GBP) is trading marginally higher while Gilts remain soft (but off earlier lows) in the wake of Wednesday's budget, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2024.11.01 21:25WTI hits fresh highs above $71,00 on revived geopolitical fears
Oil prices are appreciating for the third consecutive day on renewed concerns about escalating tensions in the Middle East.
New
2024.11.01 21:09Possible Iranian attack on Israel pushes oil prices up - Commerzbank
Oil prices rose by almost 2% today. The rise was caused by news that Iran is planning an attack on Israel in the coming days, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2024.11.01 20:59EUR/USD: Spreads widen modestly - Scotiabank
EUR/USD has drifted a little lower over the course of the session so far, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2024.11.01 20:56Gold demand rises in the third quarter due to ETF inflows - Commerzbank
The World Gold Council published data on Gold demand in the third quarter this week.
New
2024.11.01 20:42USD/CAD: Little changed on the day - Scotiabank
The Canadian Dollar (CAD) is unchanged on the session, holding in the low 1.39 area just below yesterday's high which marked a virtual pinpoint retest of the August spot peak, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2024.11.01 20:39Gold edges higher as geopolitical risks revive following Hezbollah attack in Israel
Gold (XAU/USD) edges a third of a percentage point higher on Friday, recovering from the tumble it suffered on the previous day.
New
2024.11.01 20:38CNY: Stabilization already working - Commerzbank
This morning's Caixin PMI for the manufacturing sector surprised on the upside, pointing to a slight expansion of economic output at 50.3, after coming in at 49.3 last month.
New
2024.11.01 20:35USD mixed to firmer ahead of jobs - Scotiabank
The US Dollar (USD) is tracking a little higher ahead of the US jobs data at 8.30ET.
New
2024.11.01 20:32Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
