Created
: 2025.06.27
- 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 gains ground on Thursday as Greenback weakens
World FX news
Breaking news
Canadian Dollar gains ground on Thursday as Greenback weakens
New
2025.06.27 04:23
2025.06.27 04:23
2025.06.27 04:23
- The Canadian Dollar pared back near-term losses on Thursday.
- A broad-market Greenback selloff is pushing the Loonie back into the high end.
- Mid-tier Canadian GDP figures to clash with heavyweight US PCE inflation data on Friday.
The Canadian Dollar (CAD) found room on the high side on Thursday, rising into its highest bids in over a week against the US Dollar (USD) as global markets push away from the Greenback, giving counter-currencies a leg up across the board. From a broader viewpoint, the Greenback has been pushed into multi-year lows, giving the Canadian Dollar the opportunity to test its highest bids against the USD since October of last year.
Canadian Gross Domestic Product (GDP) figures are due on Friday, but the mid-tier data release is unlikely to move Loonie markets. Not only is the single-month sample too small to draw meaningful conclusions from, but it will be overshadowed by Friday's US Personal Consumption Expenditure Price Index (PCE) inflation data due in the same release window.
Daily digest market movers: Canadian Dollar wins when the Greenback loses
- The Canadian Dollar rose to its highest bids against the US Dollar in over a week, pushing USD/CAD down toward the 1.3600 handle.
- Lacking any immediate crisis in geopolitical headlines, global investor sentiment is on the rise, pushing the Greenback down across the board.
- Recent geopolitical tensions surrounding the Middle East and US trade tariffs have simmered down, giving market participants a chance to resume stepping out of safe havens.
- Canadian GDP figures for the month of April will release on Friday, and are expected to hold stubbornly flat at 0.0% MoM.
- US PCE inflation index figures for the year ended in May will also release on Friday. Core annualized US PCE inflation is expected to climb to 2.6% YoY from 2.5%.
Canadian Dollar price forecast
Fresh gains for the Canadian Dollar on broadbase US Dollar weakness has pushed USD/CAD down toward 1.3600, chalking in a downside rejection of descending trendlines on daily candlesticks. An extended decline, which would see the Loonie gain further ground against the Greenback, will need to break through the last swing low that reversed course just above 1.3500.
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
: 2025.06.27
Related articles
USD/CAD posts modest losses below 1.3650 ahead of US PCE, Canadian GDP releases
29 minutes agoJapan's Tokyo CPI inflation eases to 3.1% YoY in June
40 minutes agoFed's Kashkari: Inflation is above 2%, have to get it back to target
50 minutes agoGBP/USD continues its march up the charts for a fourth straight day
2025.06.27 08:10US says it reaches understanding to expedite rare earth exports from China
2025.06.27 07:56France's Macron: If US 10% tariff stays, Europe will respond by imposing an equivalent on US firms
2025.06.27 07:45
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/CAD posts modest losses below 1.3650 ahead of US PCE, Canadian GDP releases
The USD/CAD pair trades with mild losses near 1.3640 during the early Asian session on Friday. The US Dollar (USD) weakens against the Canadian Dollar (CAD) amid growing market concerns about the Federal Reserve's (Fed) independence.
New
2025.06.27 08:44Japan's Tokyo CPI inflation eases to 3.1% YoY in June
The headline Tokyo Consumer Price Index (CPI) for June rose 3.1% YoY as compared to 3.4% in the previous month, the Statistics Bureau of Japan showed on Friday.
New
2025.06.27 08:33Fed's Kashkari: Inflation is above 2%, have to get it back to target
Federal Reserve Bank of Minneapolis President Neel Kashkari said late Thursday that inflation is above 2% and it has to get it back to the 2% target.
New
2025.06.27 08:22GBP/USD continues its march up the charts for a fourth straight day
GBP/USD rose on Thursday, stepping into a fourth straight day of firm gains and clipping 44-month highs near 1.3770. A broad sell-off in the US Dollar is bolstering the Greenback's major counter-currencies, helping to push Cable into its highest bids in nearly four years.
New
2025.06.27 08:10US says it reaches understanding to expedite rare earth exports from China
A White House official stated late Thursday that the United States (US) has reached an understanding with China on how to expedite rare earth shipments to the US, according to the Wall Street Journal.
New
2025.06.27 07:56Silver Price Forecast: XAG/USD steadies near $36.60 up over 1.80% weekly
Silver price turns flat as Friday's Asian session begins, trades near $36.60, virtually unchanged, compared to Thursday's June 26 daily close. The XAG/USD appears poised to close the week with gains of over 1.80%.
New
2025.06.27 07:54France's Macron: If US 10% tariff stays, Europe will respond by imposing an equivalent on US firms
French President Emmanuel Macron said late Thursday that if the United States (US) 10% tariff stays, Europe will retaliate by imposing an equivalent levy on US companies.
New
2025.06.27 07:45EUR/USD hits 1.1744, nears four-year high as Fed cut bets grow, Trump eyes Powell successor
EUR/USD soars to nearly four-year highs on Thursday, extending its rally to five straight days, with the pair clearing the 1.1700 figure for the first time since September 2021.
New
2025.06.27 07:39Gold price stalls at $3,331 despite weak Dollar, strong US data caps gains
Gold price retreats on Thursday during the North American session, failing to gain traction amid a session characterized by a weak US Dollar, which is testing levels last seen in February 2022. The XAU/USD trades at $3,331 and prints modest losses of 0.05%.
New
2025.06.27 04:41Forex Today: US PCE readings gather all the attention
The Greenback retreated further and slipped back to levels last seen in March 2022 as fears over the Fed's independence weighed heavily on investors' sentiment while traders geared up for the release of extra inflation data on Friday.
New
2025.06.27 04:31Disclaimer:
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
