Created
: 2025.07.18
- 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 trades lower around 1.3720 as US Dollar retraces
World FX news
Breaking news
USD/CAD trades lower around 1.3720 as US Dollar retraces
New
2025.07.18 19:00
2025.07.18 19:00
2025.07.18 19:00
- USD/CAD corrects to near 1.3725 as the US Dollar struggles to extend its upside.
- Traders pare Fed dovish bets as prices of products that are imported to the US have increased.
- Trade tensions between the US and Canada have weighed on the Canadian Dollar.
The USD/CAD pair is down 0.25% to near 1.3725 during the European trading session on Friday. The Loonie pair faces a slight selling pressure as the US Dollar (USD) retraces after failing to extend its two-week rally. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, corrects to near 98.30 from an over three-week high around 99.00.
The US Dollar drops while investors seek fresh cues on trade talks between the United States (US) and the Eurozone. European Union (EU) trade chief Maros Sefcovic headed to Washington on Wednesday for fresh round of trade talks. Trade negotiations between both economies soured after US President Donald Trump imposed 30% tariffs on imports from the trading bloc last weekend.
On the domestic front, growing market expectations that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for longer will continue to support the US Dollar.
According to the CME FedWatch tool, the probability for the Fed to cut interest rates in the September meeting has reduced to 58% from 70.4% seen a week ago. Traders pared Fed dovish bets after the US Consumer Price Index (CPI) data for June showed that prices of goods rose that are largely imported.
Meanwhile, the Canadian Dollar (CAD) trades lower among risk-perceived currencies amid trade tensions between the US and Canada. Over the weekend, US President Trump imposed 30% tariffs on imports from Canada, which are separate from sectoral levies.
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
: 2025.07.18
Related articles
WTI rises on Middle East tensions and softer US Dollar
18 minutes agoUS Housing Starts rise 4.6% in June, Building Permits up 0.2%
41 minutes agoFed's Waller: Private sector is not doing as well as it seems
54 minutes agoJPY flat and underperforming G10 into weekend elections - Scotiabank
2025.07.18 21:12US Dollar retreats after data-driven rally, eyes on Consumer Sentiment
2025.07.18 21:06GBP recoverys post CPI/jobs data with fundamental support via spreads - Scotiabank
2025.07.18 21:03
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
WTI rises on Middle East tensions and softer US Dollar
West Texas Intermediate (WTI), the US Crude Oil benchmark, extends gains for the second straight day on Friday, with spot prices hovering around $66.90 during the American trading hours, up nearly 1% on the day.
New
2025.07.18 22:04Gold recovers as focus shifts to US consumer sentiment data
Gold (XAU/USD) is trading higher on Friday as investors remain focused on Fed expectations and look ahead to key US economic data. At the time of writing, XAU/USD recovers above $3,350, pushing the price closer toward the upper boundary of a symmetrical triangle pattern.
New
2025.07.18 21:44US Housing Starts rise 4.6% in June, Building Permits up 0.2%
Housing Starts in the United States (US) rose by 4.6% in June to a seasonally adjusted annual rate of 1,321,000, the US Census Bureau reported on Friday. This reading followed the 9.7% decline reported in May.
New
2025.07.18 21:41OPEC does not correct, but clarifies - Commerzbank
OPEC was the last of the three agencies to present its monthly update of its forecasts this week, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
2025.07.18 21:29Fed's Waller: Private sector is not doing as well as it seems
In an interview with Bloomberg on Friday, Federal Reserve (Fed) Governor Christopher Waller said that the private sector is not doing as well as it seems, per Reuters.
New
2025.07.18 21:28Oil market in wait-and-see mode - Commerzbank
Oil prices have largely remained unchanged in recent days, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
2025.07.18 21:23The Gold price has run out of steam - Commerzbank
The Gold price seems to be increasingly running out of steam.
New
2025.07.18 21:17JPY flat and underperforming G10 into weekend elections - Scotiabank
The Japanese Yen (JPY) is flat against the US Dollar (USD) and but losing ground against all of the G10 currencies in an environment of broad-based USD weakness as we head into Friday's NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.18 21:12USD/CNH: Likely to trade in a range of 7.1740/7.1880 - UOB Group
US Dollar (USD) is likely to trade in a range of 7.1740/7.1880. In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.07.18 21:07US Dollar retreats after data-driven rally, eyes on Consumer Sentiment
The US Dollar (USD) is losing steam on Friday, pulling back from three-week highs as momentum cools. Still, the Greenback remains supported by robust US economic data released this week, which has reduced the likelihood of immediate interest rate cuts by the Federal Reserve (Fed).
New
2025.07.18 21:06Disclaimer:
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
