Created
: 2025.06.20
- 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 pares gains further as risk aversion grips holiday-thinned markets
World FX news
Breaking news
Canadian Dollar pares gains further as risk aversion grips holiday-thinned markets
New
2025.06.20 05:01
2025.06.20 05:01
2025.06.20 05:01
- The Canadian Dollar backslid against the Greenback for a third straight day.
- The Loonie push, bolstered entirely by bearish US Dollar flows, is getting hammered by souring investor sentiment.
- Middle East tensions continue to rise as the Trump administration weighs getting involved structurally.
The Canadian Dollar pared recent gains on Thursday, declining against the US Dollar for a third straight day. Global markets are turning increasingly sour on the Trump administration not only failing to quickly and quietly resolve the Israel-Iran conflict, but openly floating the idea that they might directly involve American military assets in the altercation.
Economic data remains limited on the Loonie side; however, CAD traders will be looking forward to next week's Canadian Consumer Price Index (CPI) inflation print. It's been a particularly dry run on the Canadian side of the economic data docket since the Bank of Canada's (BoC) last rate call, where the BoC snapped a seven-straight rate-cutting streak.
Daily digest market movers: US markets dark for midweek holiday, but market tensions continue to climb
- The Canadian Dollar shed weight against the US Dollar, pushing the USD/CAD pair back up to the 1.3700 handle.
- Market tensions are on the rise as the Israel-Iran conflict continues to spin up.
- According to reporting outlets, the Trump administration is actively engaging in talks with Iranian officials.
- Despite back-channel talks, President Donald Trump is still considering getting the US involved directly in the altercation, which would represent the first time the US directly deployed military assets to a foreign country since the 2003 invasion of Iraq.
- Despite insistence from the Israeli government for an answer on the US's involvement in a day or two, US White House Press Secretary Karoline Leavitt announced that the Trump team would make a decision "in a couple of weeks", a famously popular timeline for Trump watchers.
Canadian Dollar price forecast
A third straight day of declines has forced the Loonie into lower territory against the US Dollar, pushing USD/CAD back into the 1.3700 region. A near-term bull run might run out of room quickly, as downward trendlines from the multi-decade peaks set in January are still in play.
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
: 2025.06.20
Related articles
Fed's Bostic: Economic outlook remains highly uncertain
41 minutes agoEUR/USD drops below 1.1600 as strong US data slashes Fed cut odds
2025.07.18 06:13GBP/USD Price Forecast: Sellers dominate but a Doji candle hints at indecision
2025.07.18 04:44Canadian Dollar loses ground against recovering Greenback
2025.07.18 04:28Forex Today: The Yen takes centre stage ahead of inflation data and elections
2025.07.18 03:26GBP/JPY rises on weak Japanese trade data, CPI in focus
2025.07.18 03:13
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
Fed's Bostic: Economic outlook remains highly uncertain
Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic expressed further caution about the state of the US economy and potential tariff fallout on inflation metrics in an interview with the Wall Street Journal.
New
2025.07.18 06:40EUR/USD drops below 1.1600 as strong US data slashes Fed cut odds
EUR/USD tumbles during the North American session, down 0.38% following the release of economic data from the United States (US), which triggered a reaction by investors, who trimmed their bets that the Federal Reserve (Fed) will cut interest rates.
New
2025.07.18 06:13GBP/USD Price Forecast: Sellers dominate but a Doji candle hints at indecision
GBP/USD is at a technical inflection point, a battleground between weakening bullish momentum and growing bearish pressure.
New
2025.07.18 04:44Canadian Dollar loses ground against recovering Greenback
The Canadian Dollar (CAD) shed further weight on Thursday, falling to its lowest bids against the US Dollar (USD) in nearly a month as Greenback-based market flows reverse course back into the USD.
New
2025.07.18 04:28Gold slips as strong US data supports Fed hold
Gold price dropped by over 0.26% during the North American session on Thursday, trimming some of its earlier losses of nearly 1%.
New
2025.07.18 04:11Forex Today: The Yen takes centre stage ahead of inflation data and elections
The Greenback resumed its uptrend on Thursday, rapidly reversing the previous day's pullback as investors assessed auspicious US data releases while keeping a close watch on the Trump-Powell effervescence and developments around trade.
New
2025.07.18 03:26GBP/JPY rises on weak Japanese trade data, CPI in focus
The British Pound (GBP) gains positive traction against the Japanese Yen (JPY) on Thursday as sentiment surrounding the Yen remains fragile following Japan's disappointing Trade Balance data.
New
2025.07.18 03:13AUD/USD slides as weak Australian jobs data meets robust US retail sales
The Australian Dollar (AUD) is weakening against the US Dollar (USD) on Thursday after employment data from Australia reflected a slowdown in the labour market. Meanwhile, US Retail Sales data surprised to the upside, reflecting an increase in consumer spending in June.
New
2025.07.18 03:00US to impose 93.5% tariff on Chinese battery material
According to early reporting, the United States (US) could be poised to introduce a new steep import tariff on Chinese goods, this time centered around battery technology, specifically battery-grade graphite.
New
2025.07.18 02:55Dow Jones Industrial Average tests higher ground after upbeat Retail Sales print
The Dow Jones Industrial Average (DJIA) extended a mid-week rebound on Thursday, tipping back into positive territory for the week as investors continue to brush off inflationary fears, tariff threats, and growing concerns that the Federal Reserve (Fed) could be poised to lose its political autonomy
New
2025.07.18 02:32Disclaimer:
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
