Created
: 2025.06.05
- 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 Price Forecast: More downside towards 1.3600 looks likely
World FX news
Breaking news
USD/CAD Price Forecast: More downside towards 1.3600 looks likely
New
2025.06.05 13:23
2025.06.05 13:23
2025.06.05 13:23
- USD/CAD trades vulnerably near 1.3650 as the US Dollar sees more downside on disappointing an array of US economic data.
- US-China trade uncertainty also keeps the USD on the backfoot.
- The BoC kept interest rates steady at 2.75% on Wednesday, as expected.
The USD/CAD pair appears vulnerable near an over eight-month low, slightly above 1.3650 during Asian trading hours on Thursday. The Loonie pair stays under pressure as the US Dollar (USD) remains on backfoot amid renewed United States (US) stagflation risks and trade uncertainty.
The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades cautiously near the six-week low around 98.60.
On Thursday, disappointing private sector employment and ISM Services Purchasing Managers' index (PMI) data for May exhibited softening labor demand, declining service sector activity, and rising input costs, a scenario that typically pushes the economy into a stagflation.
Meanwhile, trade uncertainty between the US and China has escalated after President Donald Trump signaled in a post on Truth.Social that negotiations with XI Jinping are a hard nut to crack.
In the Canadian economy, the Bank of Canada's (BoC) decision to hold interest rates steady at 2.75% and its discouraging comments on any near-term monetary policy adjustments have strengthened the Canadian Dollar (CAD). The BoC left its key borrowing rates steady at 2.75% on Wednesday, as expected.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | 0.06% | 0.14% | -0.00% | 0.01% | 0.05% | 0.06% | |
| EUR | -0.06% | 0.05% | 0.10% | -0.03% | -0.04% | -0.07% | 0.03% | |
| GBP | -0.06% | -0.05% | 0.08% | -0.09% | -0.07% | -0.13% | -0.03% | |
| JPY | -0.14% | -0.10% | -0.08% | -0.15% | -0.18% | -0.19% | -0.08% | |
| CAD | 0.00% | 0.03% | 0.09% | 0.15% | -0.02% | -0.04% | 0.06% | |
| AUD | -0.01% | 0.04% | 0.07% | 0.18% | 0.02% | -0.06% | 0.05% | |
| NZD | -0.05% | 0.07% | 0.13% | 0.19% | 0.04% | 0.06% | 0.12% | |
| CHF | -0.06% | -0.03% | 0.03% | 0.08% | -0.06% | -0.05% | -0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
USD/CAD has retraced over 78.6% of the swing plotted from the late September low around 1.3400 to the early February high near 1.4800. Typically, a retracement over 61.8% accelerates the downside move to the end of the swing.
Declining 20-day Exponential Moving Average (EMA) near 1.3800 reflects that the near-term trend is bearish.
The 14-day Relative Strength Index (RSI) slides to near 33.00, indicating a strong bearish momentum.
More downside in the pair looks likely below Wednesday's low of 1.3650, which would drag it towards the round level of 1.3600 and the psychological figure of 1.3500.
In an alternate scenario, a recovery move above the May 29 high of 1.3820 would turn the near-term trend bullish and open the door towards the May 21 high of 1.3920, followed by the May 15 high of 1.4000.
USD/CAD daily chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.06.05
Related articles
USD/INR slips as RBI delivers surprise 50 bps interest-rate cut, markets cheer dovish pivot
27 minutes agoGold treads water with US NFP and US-China trade talks in focus
30 minutes agoJPY is underperforming on the day - Scotiabank
49 minutes agoGBP down modestly from Thursday's multi-year high - Scotiabank
51 minutes agoECB's Centeno: Tariffs imposed by US are deflationary
2025.06.06 20:37CAD little changed ahead of jobs data - Scotiabank
2025.06.06 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
USD/INR slips as RBI delivers surprise 50 bps interest-rate cut, markets cheer dovish pivot
The Indian Rupee (INR) strengthens slightly against the United States Dollar (USD) on Friday, despite a surprise 50-basis-point (bps) interest-rate cut by the Reserve Bank of India (RBI).
New
2025.06.06 21:17Gold treads water with US NFP and US-China trade talks in focus
Gold (XAU/USD) has fallen back into a narrow range of consolidation on Friday, trading around $3,363 at the time of writing and with Investors remaining on high alert ahead of the Nonfarm Payrolls (NFP) report release.
New
2025.06.06 21:13IEA expects rising investments in low-emission energies, decline in Oil investments - Commerzbank
The International Energy Agency published a report on investments in the energy sector yesterday, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.06.06 20:57JPY is underperforming on the day - Scotiabank
Japanese Yen (JPY) is down 0.4% vs. the US Dollar (USD) and underperforming all of the G10 currencies in an environment of modest USD strength.
New
2025.06.06 20:55GBP down modestly from Thursday's multi-year high - Scotiabank
Pound Sterling (GBP) is also down 0.2% vs. the US Dollar (USD) with a modest pullback from Thursday's fresh multi-year high, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.06 20:52OPEC Oil production rose less than agreed in May - Commerzbank
According to a Bloomberg survey, the nine OPEC countries bound by production targets increased Oil production by nearly 200 thousand barrels per day in May, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.06.06 20:48ECB's Centeno: Tariffs imposed by US are deflationary
European Central Bank (ECB) policymaker Mario Centeno said on Friday that that the tariffs imposed by the United States will have a deflationary effect in the Eurozone, per Reuters.
New
2025.06.06 20:37CAD little changed ahead of jobs data - Scotiabank
The Canadian Dollar (CAD) is little changed against the generally stronger USD on the session and out-performing its G10 peers as a consequence, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.06 20:32USD/JPY extends recovery to near 144.00 ahead of US NFP data
The USD/JPY pair rises further to near 144.00 during European trading hours on Friday, following the previous day's recovery move. The pair strengthens as the US Dollar (USD) extends recovery ahead of the United States (US) Nonfarm Payrolls (NFP) data for May, which will be published at 12:30 GMT.
New
2025.06.06 20:32EUR quiet around pre-ECB levels as markets reassess outlook for cuts - Scotiabank
Euro (EUR) is soft, down a marginal 0.2% vs. the US Dollar (USD) and trading around levels that had prevailed ahead of Thursday's ECB meeting, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.06 20:31Disclaimer:
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
