Created
: 2025.06.03
- 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 tests fresh multi-month highs to kickstart June markets
World FX news
Breaking news
Canadian Dollar tests fresh multi-month highs to kickstart June markets
2025.06.03 06:59
2025.06.03 06:59
- The Canadian Dollar briefly tested a fresh six-month high against the Greenback on Monday.
- June market trading kicked off with a fresh bout of US selling pressure as tariff concerns weigh on US sentiment.
- The BoC's latest rate call, slated for this week, is expected to see a hold on rates for now.
The Canadian Dollar (CAD) caught a fresh bid against the US Dollar (USD), with June's market window kicking things off with a fresh six-month peak in intraday Loonie bids against the Greenback. The Trump administration has hit high gear on tariff moves, sparking a fresh round of risk aversion that is keeping the US Dollar under pressure.
The Bank of Canada's (BoC) latest rate call is slated for Wednesday. The BoC is broadly expected to slow down its frenzied pace of rate cutting, with policymakers expected to hold off on further rate trims in June. On the US side, the Trump administration has imposed an arbitrary deadline of this Wednesday for trading partners to deliver their best deals to Trump's desk, or risk facing April's "reciprocal tariffs" getting re-imposed in July.
Daily digest market movers: Ongoing trade tensions give the Canadian Dollar a fresh leg up
- The Canadian Dollar saw its highest close against the US Dollar in six months, keeping the USD/CAD pair trapped near 1.3700.
- The ongoing legal battle over Trump's tariffs has deepened, after the US Court of International Trade petitioned the federal appeals court to strike down Trump's sweeping tariffs until Trump's appeal of the USCIT ruling is finished.
- The Trump administration, facing obstacles from the courts, has kicked tariff action into high gear.
- Trump has announced a doubling of tariffs on all imports of steel into the US, pushing the import tax from 25% to 50%. The US is an aggregate importer of steel, and will likely be forced to pay higher prices across the board as US industry has no alternatives but to face increased import costs head on.
- The Trump administration is reportedly preparing to tell trading partners that they have until Wednesday to deliver their best trade deal offer to the Trump team. With no concrete trade deals on the table, this is unlikely to produce meaningful results.
Canadian Dollar price forecast
The Canadian Dollar briefly tested fresh six-month lows on Monday, kicking off the June trading month on a high note. However, a near-term floor supporting the Greenback remains in place, keeping USD/CAD bolstered on the high side of 1.3700 for the time being. Still, the Canadian Dollar eked out its highest close against the US Dollar since last October, and USD/CAD is poised for a continued push to the low end.
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
: 2025.06.03
Related articles
Canadian Dollar snaps lower after Trump pulls the plug on trade talks with Canada
2025.06.28 05:43EUR/USD slips below 1.1700 as core PCE tops estimates, Eurozone data mixed
2025.06.28 05:39AUD/USD retreats from YTD highs as risk sentiment steadies, US Dollar firms
2025.06.28 04:37NZD/USD holds below YTD peak, capped in rising wedge pattern
2025.06.28 03:23EUR/USD hits multi-year highs as USD struggles despite hotter PCE print
2025.06.28 01:44USD/JPY edges higher as US core PCE rises and risk-on sentiment reduces demand for the Yen
2025.06.28 01:04
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
Silver Price Forecast: XAG/USD dips below $36.20 after bearish reversal, US yields rebound
Silver price sinks more than 1% on Friday, ahead of the weekend, after refreshing five-day highs of $36.83, ahead of $37.00. At the time of writing, XAG/USD trades at $36.16 due to a slight recovery in the US dollar and rising US Treasury yields.
New
2025.06.28 05:57Canadian Dollar snaps lower after Trump pulls the plug on trade talks with Canada
The Canadian Dollar (CAD) backslid on Friday, falling back on a combination of weakening Canadian Gross Domestic Product (GDP) growth metrics and fresh trade tensions with US President Donald Trump.
New
2025.06.28 05:43EUR/USD slips below 1.1700 as core PCE tops estimates, Eurozone data mixed
The EUR/USD retreats from yearly highs above 1.1750, tumbling below 1.1700 despite market participants being convinced that the Federal Reserve (Fed) will cut rates at the September meeting.
New
2025.06.28 05:39AUD/USD retreats from YTD highs as risk sentiment steadies, US Dollar firms
The Australian Dollar (AUD) is pulling back from weekly highs against the US Dollar (USD) on Friday.
New
2025.06.28 04:37Dow Jones Industrial Average accelerates into the high end as interest rate cut bets climb
The Dow Jones Industrial Average (DJIA) gained ground on Friday, driven by a combination of investor expectations that the US will figure out how to secure trade deals that circumvent its own ringfence of threatened tariffs, and rising expectations of more rate cuts from the Federal Reserve (Fed) by
New
2025.06.28 03:50NZD/USD holds below YTD peak, capped in rising wedge pattern
NZD/USD struggles to extend its recent advance on Friday, hovering near 0.6045 after an intraday high of 0.6079. The pair remains trapped inside a rising wedge formation, typically a bearish signal, as the broadly weak US Dollar steadies.
New
2025.06.28 03:23WTI Crude Oil posts largest weekly drop since March 2023
West Texas Intermediate (WTI) Crude Oil has fallen sharply since reaching a high of $76.44 on Monday, with prices declining more than $10.00 per barrel this week.
New
2025.06.28 03:19Gold plunges below $3,300 as risk appetite surges on China trade deal, Middle East diplomacy
Gold price tumbled over 1.50% on Friday amid an improvement in risk appetite, driven by several factors.
New
2025.06.28 02:40EUR/USD hits multi-year highs as USD struggles despite hotter PCE print
The Euro (EUR) climbs for an eighth consecutive day against the US Dollar (USD) on Friday, as the Greenback remains under pressure amid a combination of political and economic headwinds.
New
2025.06.28 01:44Tensions on the Copper market - Commerzbank
According to the International Copper Study Group, the Copper market slipped from a supply surplus to a supply deficit of 50 thousand tons in April, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
New
2025.06.28 01:34Disclaimer:
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
