Created
: 2025.03.06
- 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
Canada's Foreign Minister Joly: Potentially use oil and gas exports as a lever if US tariffs continue
World FX news
Breaking news
Canada's Foreign Minister Joly: Potentially use oil and gas exports as a lever if US tariffs continue
New
2025.03.06 07:40
2025.03.06 07:40
2025.03.06 07:40
Canada's Foreign Minister Melanie Joly said late Wednesday that the country could potentially use oil and gas exports as a lever if US tariffs continue, per Reuters.
Key quotes
Canada may consider using its oil and gas exports as leverage if US tariffs on Canadian imports increase.
While Canada has pledged to impose tariffs on C$155 billion worth of US imports, it has not yet suggested cutting commodity exports.
Canada currently exports around 4 million barrels of oil per day to the US. (representing about 90% of its total crude exports).
Market reaction
At the time of writing, the USD/CAD is trading 0.04% lower on the day to trade at 1.4335.
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
: 2025.03.06
Related articles
US Dollar undergoes seismic shift with DXY down 3% in worst week since 2022
24 minutes agoUSD/CAD gains to near 1.4360 despite US Dollar declines
2025.03.06 20:34EUR/CHF: Domestic inflation continues to edge lower- Danske Bank
2025.03.06 20:17EUR/USD: ECB meeting to have limited market impact - Danske Bank
2025.03.06 20:13USD/JPY has a chance to edge lower - UOB Group
2025.03.06 19:53NZD/USD can rise further - UOB Group
2025.03.06 19:44
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
US Dollar undergoes seismic shift with DXY down 3% in worst week since 2022
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is facing a pivotal change in its trading regime this week.
New
2025.03.06 21:38USD/CAD gains to near 1.4360 despite US Dollar declines
The USD/CAD pair moves higher to near 1.4360 in Thursday's European session despite the US Dollar (USD) extends its downside, suggesting significant weakness in the Canadian Dollar (CAD).
New
2025.03.06 20:34EUR/CHF: Domestic inflation continues to edge lower- Danske Bank
CHF was among the big losers yesterday with EUR/CHF rising 1.5% during yesterday's session, Danske Bank's FX analyst Kirstine Kundby-Nielsen reports.
New
2025.03.06 20:17EUR/USD: ECB meeting to have limited market impact - Danske Bank
EUR/USD has risen sharply this week, breaking well above 1.07 for the first time since the US election, with EUR optimism continuing in yesterday's session.
New
2025.03.06 20:13Metals: Comex/LME copper arb surges - ING
Comex copper futures surged more than 5% yesterday after US President Donald Trump proposed a 25% tariff on copper imports, ING's commodity analysts Warren Patterson and Ewa Manthey note.
New
2025.03.06 20:07USD/CNH does not have enough momentum to break below 7.2260 - UOB Group
US Dollar (USD) could decline gradually vs Chinese Yuan (CNH); it does not appear to have enough momentum to break below 7.2260.
New
2025.03.06 20:04Gas prices enter a volatile phase - ING
European natural gas prices traded in a volatile manner yesterday, ING's commodity analysts Warren Patterson and Ewa Manthey notes.
New
2025.03.06 19:57USD/JPY has a chance to edge lower - UOB Group
US Dollar (USD) could edge lower vs Japanese Yen (JPY), but any weakness is viewed as a lower 148.00/150.00 range.
New
2025.03.06 19:53Oil: Brent breaks below $70/bbl - ING
Sentiment remains negative in the oil market, with ICE Brent falling close to 2.5% yesterday.
New
2025.03.06 19:48NZD/USD can rise further - UOB Group
New Zealand Dollar (NZD) could rise further vs US Dollar (USD); overbought conditions suggest the major resistance at 0.5775 is out of reach for now.
New
2025.03.06 19:44Disclaimer:
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
