Created
: 2024.11.16
- 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
Canadian Dollar crumples even further on Friday
Breaking news
Canadian Dollar crumples even further on Friday
New
2024.11.16 05:12
2024.11.16 05:12
2024.11.16 05:12
- The Canadian Dollar continued its march lower on Friday.
- Canada remains inconsequential on the economic calendar.
- CAD traders to wait for next Tuesday's Canadian CPI print.
The Canadian Dollar (CAD) found fresh lows on Friday as broader markets continues to pivot into the safe haven Greenback. A slight miss in US Retail Sales was all it took to bolster the US Dollar and send USD/CAD into fresh multi-year highs.
Canada continues to remain absent from the economic calendar this week. A week of strictly low-tier, low-impact data has left the Canadian Dollar on the ropes, but next week's Canadian Consumer Price Index (CPI) inflation print is unlikely to change matters much.
Daily digest market movers: Canadian Dollar waffles to fresh 54-month low
- The Canadian Dollar found a new four and a half year low on Friday, pushing USD/CAD into 1.4090 for the first time since May of 2020.
- Meaningful Canadian economic data remains entirely absent from the economic calendar.
- CAD traders are unlikely to get much of a push from next Tuesday's Canadian CPI inflation print as the Bank of Canada (BoC) is already accelerating the pace of interest rate cuts in the face of rapidly-cooling inflation and a lopsided economy.
- Canada's economic metrics continue to rely too much on already-high housing and shelter prices continuing to rise into the stratosphere.
- US Retail Sales beat forecasts, but still eased in October. Headline US Retail Sales eased to 0.4% compared to the expected 0.3%, falling away from September's revised print of 0.8%.
Canadian Dollar price forecast
The sky's the limit as the Canadian Dollar (CAD) continues to shed weight against the Greenback; USD/CAD's fresh push into multi-year highs has the pair testing bids just shy of 1.4100. The pair is on pace to close in the green for a sixth consecutive trading day as the CAD recedes against the US Dollar.
The nearest technical floor sits at the last swing low, lined up nearly perfectly with the 50-day Exponential Moving Average (EMA) near 1.3780.
USD/CAD daily 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.
Last updated
: 2024.11.16
Related articles
NZD/USD Price Analysis: Pair saw a volatile session, high near 20-day SMA then retreated
2024.11.16 06:48Canadian Dollar crumples even further on Friday
2024.11.16 05:11Australian Dollar finishes the week with a rebound as the USD eases
2024.11.16 05:08Mexican Peso gains despite Moody's negative outlook
2024.11.16 04:41Fed's Goolsbee: The Fed needs to focus on longer trends.
2024.11.16 04:11US Dollar eases five-day winning streak on profit-taking
2024.11.16 03:27
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
NZD/USD Price Analysis: Pair saw a volatile session, high near 20-day SMA then retreated
The NZD/USD saw a volatile session on Friday, initially soaring to a high around 0.5970 near the 20-day Simple Moving Average (SMA) before erasing all the gains towards 0.5850.
New
2024.11.16 06:48Silver Price Forecast: XAG/USD remains bearish biased, dips below $30.30
Silver's price fell over 0.70% beneath $30.30 after robust US Retail Sales data suggested the Federal Reserve could gradually ease policy.
New
2024.11.16 06:31Gold marks sixth-day of losses on Powell's slightly hawkish rhetoric
Gold prices extended their losses for the sixth straight day, set to achieve weekly losses of over 4%, the largest since September 2023.
New
2024.11.16 06:12Canadian Dollar crumples even further on Friday
The Canadian Dollar (CAD) found fresh lows on Friday as broader markets continues to pivot into the safe haven Greenback.
New
2024.11.16 05:11Australian Dollar finishes the week with a rebound as the USD eases
The AUD/USD pair rose by 0.20% to 0.6460 in Friday's session.
New
2024.11.16 05:08Mexican Peso gains despite Moody's negative outlook
The Mexican Peso recovered some ground against the US Dollar during the North American session, shrugging off Moody's adjustment on Mexico's credit outlook and upbeat US Retail Sales data.
New
2024.11.16 04:41Dow Jones Industrial Average tumbles over 350 points on Friday
The Dow Jones Industrial Average (DJIA) trimmed it's recent bull run, declining over 350 points and giving back roughly 0.85% as investors grapple with an increasingly uncertain future.
New
2024.11.16 04:28Fed's Goolsbee: The Fed needs to focus on longer trends.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Friday that markets tend to overreact to interest rate changes, and that the Fed should maintain a slow and steady approach to reaching the neutral rate.
New
2024.11.16 04:11US Dollar eases five-day winning streak on profit-taking
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, failed to secure a sixth consecutive day of gains in a volatile trading Friday.
New
2024.11.16 03:27GBP/USD Price Forecast: Stumbles on soft UK data, bears target 1.2600
The Pound Sterling extends its agony and printing losses for the sixth straight day against the Greenback.
New
2024.11.16 01:30Disclaimer:
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
