Created
: 2025.08.08
- 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 weakens to below 1.3750, Canadian jobs report in focus
World FX news
Breaking news
USD/CAD weakens to below 1.3750, Canadian jobs report in focus
New
2025.08.08 08:06
2025.08.08 08:06
2025.08.08 08:06
- USD/CAD softens to around 1.3735 in Friday's early Asian session.
- Fed Governor Waller has reportedly emerged as the top contender to succeed embattled Fed Chair Jerome Powell.
- Traders await the Canadian July jobs report, which is due later on Friday.
The USD/CAD pair trades in negative territory around 1.3735 during the early Asian session on Friday. The Greenback edges lower against the Canadian Dollar (CAD) as traders boost bets that the US Federal Reserve (Fed) will cut rates in September after weak US Nonfarm Payrolls (NFP) data. The Canadian jobs report for July will be in the spotlight later on Friday.
The US July jobs report, released last Friday, showed fewer job gains than expected and sharp downward revisions to previous months, prompting traders to raise bets on more interest rate cuts than previously expected this year. Fed funds futures traders are now pricing in a 94% chance of a 25 basis point (bps) cut at the September meeting, up from 48% a week ago, according to the CME FedWatch tool.
Additionally, the soft US Initial Jobless Claims contribute to the USD's downside. Data by the US Department of Labour (DOL) on Thursday showed that the number of US citizens submitting new applications for unemployment insurance increased to 226K for the week ending August 2. This figure came in above the market consensus of 221K and was higher than the previous week's 218K
Traders will keep an eye on US President Donald Trump's plans to replace Fed Chair Powell. According to Bloomberg, Fed Governor Christopher Waller is emerging as a top candidate to serve as the central bank's chair among Trump's advisers.
Meanwhile, an extended downside in crude oil prices due to rising OPEC+ supply and worries of weaker global demand could weigh on the commodity-linked Loonie and help limit the pair's losses. It's worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.
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
: 2025.08.08
Related articles
NZD/USD trades with mild losses to near 0.5950 on modest US Dollar strength
24 minutes agoPBOC sets USD/CNY reference rate at 7.1382 vs. 7.1345 previous
31 minutes agoJapan's Akazawa sees US to repay accumulated taxes later
59 minutes agoBoJ Summary of Opinions: Member says uncertainty surrounding trade policy and impact remains large
2025.08.08 09:18GBP/USD: Greenback weakens and BoE rate cut bets decline
2025.08.08 08:37US imposes tariffs on one-kilo gold bars -- FT
2025.08.08 08:15
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
NZD/USD trades with mild losses to near 0.5950 on modest US Dollar strength
The NZD/USD pair trades with mild losses near 0.5960 during the early Asian trading hours on Friday. However, the potential downside for the pair might be limited amid encouraging Chinese trade data.
New
2025.08.08 10:21PBOC sets USD/CNY reference rate at 7.1382 vs. 7.1345 previous
On Friday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1382 as compared to the previous day's fix of 7.1345 and 7.1742 Reuters estimate.
New
2025.08.08 10:15Japan's Akazawa sees US to repay accumulated taxes later
Japanese trade envoy Ryosei Akazawa said on Friday that the United States (US) has agreed to correct a presidential order on tariffs and refund any excess duties collected in error. Akazawa added that there was no disagreement between the US and Japan over reciprocal tariffs.
New
2025.08.08 09:47BoJ Summary of Opinions: Member says uncertainty surrounding trade policy and impact remains large
The Bank of Japan (BoJ) published the Summary of Opinions from the July monetary policy meeting, with the key findings noted below.
New
2025.08.08 09:18WTI extends the decline to below $63.50 on potential US-Russia meeting
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.20 during the early Asian trading hours on Friday. The WTI remains on the defensive amid potential US-Russia talks, raising expectations for a diplomatic end to the war in Ukraine.
New
2025.08.08 09:12GBP/USD: Greenback weakens and BoE rate cut bets decline
GBP/USD extended recent bullish momentum on Thursday, gaining over two-thirds of one percent on the day and climbing above key technical indicators as market rebalance both a weaker US Dollar (USD) and a stronger Pound Sterling (GBP).
New
2025.08.08 08:37US imposes tariffs on one-kilo gold bars -- FT
The United States (US) has slapped tariffs on imports of one-kilo gold bars in a blow to refining hub Switzerland, the world's largest refining hub, the Financial Times reported late Thursday.
New
2025.08.08 08:15USD/CAD weakens to below 1.3750, Canadian jobs report in focus
The USD/CAD pair trades in negative territory around 1.3735 during the early Asian session on Friday. The Greenback edges lower against the Canadian Dollar (CAD) as traders boost bets that the US Federal Reserve (Fed) will cut rates in September after weak US Nonfarm Payrolls (NFP) data.
New
2025.08.08 08:05EUR/USD flat as Waller rumored to be Trump's pick for Fed Chair
The EUR/USD turned flat late on Thursday, spurred by rumors that the White House is considering Federal Reserve Governor Christopher Waller as the top candidate to be the next Fed Chair, succeeding Jerome Powell.
New
2025.08.08 06:52Donald Trump taps CEA Chair Stephen Miran for seat on Fed board
United States (US) President Donald Trump announced on Thursday that he would be selecting Stephen Miran, the current Chair of the US Council of Economic Advisors, to replace recently resigned Federal Reserve (Fed) Board of Governors (BoG) member Adriana Kugler.
New
2025.08.08 05:47Disclaimer:
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
