Created
: 2025.07.11
- 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
EUR/CAD drifts higher to near 1.6000 ahead of Canadian employment release
World FX news
Breaking news
EUR/CAD drifts higher to near 1.6000 ahead of Canadian employment release
New
2025.07.11 16:05
2025.07.11 16:05
2025.07.11 16:05
- EUR/CAD trades on a positive note around 1.5995 in Friday's early European session.
- Trump threatened 35% tariffs on Canadian goods.
- Investors brace for the Canadian employment report for June, which is due later on Friday.
The EUR/CAD cross edges higher to near 1.5995 during the early European trading hours on Friday. The Canadian dollar weakens against the Euro (EUR) after US President Donald Trump announces new tariffs. Investors await the release of the Canadian employment report for June, which will be released later on Friday.
Late Thursday, Trump said he will impose a 35% tariff on Canadian goods starting on August 1. The announcement came along with additional threats of blanket tariffs of 15% or 20% on most trade partners. Canadian Prime Minister Mark Carney said his government would continue to protect Canadian workers and businesses as they worked towards the new deadline.
The Canadian June employment report will be in the spotlight later on Friday. The Unemployment Rate in Canada is expected to tick higher to 7.1% in June from 7.0% in May. Furthermore, investors forecast the economy will add no jobs in the same month, reversing May's 8.8K increase. Any signs of cooling in the Canadian labor market could favor additional rate cuts, weighing on the CAD.
On the Euro front, investors will closely monitor the developments surrounding the EU and US trade deal. Trump stated that the members of the EU would get letters notifying them of new tariff rates "in the coming days." The uncertainty around Trump's evolving trade policy could undermine the EUR against the CAD in the near term.
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
: 2025.07.11
Related articles
US Retail Sales rise 0.6% in June vs. 0.1% expected
33 minutes agoUS: Initial Jobless Claims dropped to 221K last week
35 minutes agoUS Dollar holds firm as Trump walks back threat to remove Fed Chair Powell
2025.07.17 21:10JPY is underperforming into this weekend's upper house elections - Scotiabank
2025.07.17 20:52GBP a relative outperformer on labor data surprise - Scotiabank
2025.07.17 20:48USD/JPY trades firmly around 148.70 ahead of Japan's elections
2025.07.17 20:40
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
Gold price slips as US Retail Sales beat expectations
Gold (XAU/USD) is experiencing a pullback in the European session on Thursday as traders digest US Retail Sales data and await further comments from Federal Reserve (Fed) officials. The yellow metal trades near $3,315 at the time of writing, losing almost 1% in the day.
New
2025.07.17 21:50US Retail Sales rise 0.6% in June vs. 0.1% expected
Retail Sales in the US increased by 0.6% on a monthly basis to $720.1 billion in June, the US Census Bureau reported on Thursday. This reading followed the 0.9% decrease reported in May and came in better than the market expectation for an increase of 0.1%.
New
2025.07.17 21:38US: Initial Jobless Claims dropped to 221K last week
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance fell to 221K for the week ending July 12.
New
2025.07.17 21:35Silver Price Forecast: XAG/USD consolidates below multi-year high as bullish momentum softens
Silver (XAG/USD) is little changed on Thursday, trading around $37.80 after logging a modest gain of nearly 0.56% on Wednesday.
New
2025.07.17 21:24US Dollar holds firm as Trump walks back threat to remove Fed Chair Powell
The US Dollar (USD) gains positive traction on Thursday, recovering from a brief wobble late Wednesday after reports emerged that US President Donald Trump was considering firing Federal Reserve (Fed) Chair Jerome Powell.
New
2025.07.17 21:10JPY is underperforming into this weekend's upper house elections - Scotiabank
The Japanese Yen (JPY) is weak, down 0.6% against the US Dollar (USD) and underperforming most of the G10 currencies amid broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.17 20:52GBP a relative outperformer on labor data surprise - Scotiabank
The Pound Sterling (GBP) is down only 0.2% against the US Dollar (USD) and outperforming all of its G10 peers into Thursday's NA open. In the longer run, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.17 20:48Gold Price Forecast: XAU/USD approaches weekly lows at $3,320
Gold (XAU/USD) is trading lower on Thursday, weighed by a stronger US Dollar, with risk appetite subdued amid ongoing uncertainty about global trade and rumours about the resignation of the Fed Chair Jerome Powell.The precious metal retreats from Monday's highs at $3,375, but price action remains co
New
2025.07.17 20:42USD/JPY trades firmly around 148.70 ahead of Japan's elections
The USD/JPY pair gains over 0.5% to near 148.70 on Thursday. The pair trades firmly as the US Dollar (USD) demonstrates strength, following United States (US) President Donald Trump refuted to reports stating the dismissal of Federal Reserve (Fed) Chair Jerome Powell soon.
New
2025.07.17 20:40EUR weak despite as-expected CPI - Scotiabank
The Euro (EUR) is weak, down 0.5% against the US Dollar (USD) and a mid-performer among the G10 in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.17 20:35Disclaimer:
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
