Created
: 2025.02.18
- 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 flatlines on holiday Monday
Breaking news
Canadian Dollar flatlines on holiday Monday
New
2025.02.18 02:09
2025.02.18 02:09
2025.02.18 02:09
- Canadian Dollar markets are shuttered for a federal holiday.
- US markets are also quiet, further crimping volume flow from the Greenback side.
- Canadian CPI inflation figures due this week, as well as FOMC Meeting Minutes.
The Canadian Dollar (CAD) was flat on Monday, driven into the middle by a complete lack of market volume. Canadian and US money markets are dark for matching federal holidays, and trading volumes have dried up at the start of the new trading week.
Canadian Consumer Price Index (CPI) inflation figures will be the key print for Loonie traders this week. The US Federal Reserve (Fed) Meeting Minutes from the Federal Open Market Committee's (FOMC) latest rate call will also be dropping this week.
Daily digest market movers: Double-header market holidays dry out USD/CAD flows
- The Canadian Dollar remains overwhelmingly unchanged on Monday.
- Most of Canada's money markets are dark for synchronized provincial holidays, and US markets are shuttered to celebrate President's Day.
- Canadian CPI inflation is due on Tuesday. Canada's annualized CPI print is expected to hold steady at 1.8% YoY, though a slight uptick in January's MoM figure is expected.
- The Fed's latest Meeting Minutes will be published on Wednesday.
- Key US Purchasing Managers Index (PMI) business activity survey results are due later this week.
Canadian Dollar price forecast
After catching its fourth straight daily gain against the Greenback last week, the Canadian Dollar has lost all momentum on Monday. Overall bullish momentum remains limited, and USD/CAD has waffled further back below the 50-day Exponential Moving Average (EMA) near 1.4280. A firm technical floor is still priced in at the 200-day EMA just south of 1.4000.
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
: 2025.02.18
Related articles
Japanese Yen retreats after hitting over two-month high against USD
14 minutes agoUSD/INR holds steady amid foreign outflows
30 minutes agoNZD/USD holds gains near 0.5750 following Retail Sales, China's annual policy blueprint
44 minutes agoAustralian Dollar appreciates following China's annual policy statement
2025.02.24 10:34PBOC sets USD/CNY reference rate at 7.1717 vs. 7.1696 previous
2025.02.24 10:15GBP/USD climbs back above mid-1.2600s, closer to over two-month peak touched on Friday
2025.02.24 10:10
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
Japanese Yen retreats after hitting over two-month high against USD
The Japanese Yen (JPY) builds on last week's strong gains against its American counterpart and drags the USD/JPY pair below the 149.00 mark, or the lowest level since early December during the Asian session on Monday.
New
2025.02.24 11:48USD/INR holds steady amid foreign outflows
The Indian Rupee (INR) flat lines on Monday. The concern over Foreign Portfolio Investment (FPI) outflows, with foreign investors offloading over $11 billion in Indian stocks this year might weigh on the local currency.
New
2025.02.24 11:32NZD/USD holds gains near 0.5750 following Retail Sales, China's annual policy blueprint
NZD/USD recovers recent losses registered in the previous session, trading around 0.5750 during the Asian hours on Monday.
New
2025.02.24 11:18Australian Dollar appreciates following China's annual policy statement
The Australian Dollar (AUD) retraces its recent losses from the previous session on Monday following the Chinese government's release of its annual policy statement for 2025 on Sunday.
New
2025.02.24 10:34Gold Price Forecast: XAU/USD attracts some sellers below $2,950 on profit-taking
Gold price (XAU/USD) drifts lower to near $2,925 during the Asian trading hours on Monday.
New
2025.02.24 10:16PBOC sets USD/CNY reference rate at 7.1717 vs. 7.1696 previous
On Monday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1717 as compared to Friday's fix of 7.1696 and 7.2498 Reuters estimates.
New
2025.02.24 10:15GBP/USD climbs back above mid-1.2600s, closer to over two-month peak touched on Friday
The GBP/USD pair kicks off the new week on a positive note and climbs above mid-1.2600s during the Asian session, closer to over a two-month top touched on Friday.
New
2025.02.24 10:10China unveils rural revitalisation plans in annual policy blueprint
China unveiled the State Council's annual rural policy blueprint for 2025, known as the "No.1 document" on Sunday, outlining the priorities for further deepening rural reforms and taking solid steps in advancing all-around rural revitalization, per CNBC.
New
2025.02.24 09:47AUD/USD gains traction above 0.6350 on weaker US Dollar
The AUD/USD pair edges higher to near 0.6370 during the early Asian session on Monday.
New
2025.02.24 09:31ECB's Villeroy: Deposit rates could be at 2% by this summer
European Central Bank policymaker and Bank of France head, Francois Villeroy de Galhau, said on Saturday that the ECB could cut its deposit rate down to 2% by this summer, per Reuters.
New
2025.02.24 08:41Disclaimer:
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
