Created
: 2025.08.19
- 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 holds above 100-day SMA; looks to build on strength beyond 1.3800
World FX news
Breaking news
USD/CAD holds above 100-day SMA; looks to build on strength beyond 1.3800
New
2025.08.19 13:56
2025.08.19 13:56
2025.08.19 13:56
- USD/CAD regains some positive traction on Tuesday, though it lacks bullish conviction.
- Bearish Crude Oil prices undermine the Loonie and support the pair amid a USD uptick.
- Traders opt to wait for more cues about the Fed's rate-cut path before placing fresh bets.
The USD/CAD pair climbs back above the 1.3800 mark during the Asian session on Tuesday, though it lacks bullish conviction and remains below an over two-week high touched the previous day. Moreover, a combination of diverging forces might hold back traders from positioning for any meaningful appreciating move for spot prices.
Crude Oil prices meet with a fresh supply amid the optimism over planned three-way peace talks between Russia, Ukraine, and the US, which could lead to an end to sanctions on Russian crude. This, along with persistent trade-related uncertainty and the Bank of Canada's (BoC) dovish tilt, undermines the commodity-linked Loonie. Apart from this, a modest US Dollar (USD) uptick acts as a tailwind for the USD/CAD pair.
In fact, US President Donald Trump raised tariffs on Canadian goods from 25% to 35%. Moreover, the White House announced a 40% transshipment tariff on goods rerouted through third countries to avoid the duties. Adding to this, the BoC left the door open for further interest rate cuts in the coming months. This, in turn, is seen weighing on the Canadian Dollar (CAD) and offering some support to the USD/CAD pair.
Meanwhile, any meaningful USD upside seems elusive amid the growing acceptance that the US Federal Reserve (Fed) will resume its rate-cutting cycle in September. Traders also seem reluctant and opt to wait for more cues about the Fed's rate-cut path. Hence, the focus will remain on the FOMC meeting Minutes, due for release on Wednesday, and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium.
The aforementioned fundamental backdrop makes it prudent to wait for strong follow-through before placing fresh bullish bets around the USD/CAD pair. That said, the emergence of some dip-buying on Tuesday and acceptance above the 100-day Simple Moving Average (SMA) backs the case for some meaningful upside for spot prices. Hence, any corrective pullback could be seen as a buying opportunity and remain limited.
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
: 2025.08.19
Related articles
EUR/USD falls to 1.1705 as US Dollar rebounds despite Fed cut bets
2025.09.10 06:25Canadian Dollar sinks after NFP revisions drive US Dollar higher
2025.09.10 03:01Forex Today: Inflation comes to the fore with US PPI and China's CPI
2025.09.10 02:55Dow Jones Industrial Average froths as employment revisions support Fed rate cuts
2025.09.10 01:29USD/JPY reverses from four-week low as US jobs revision lifts Greenback
2025.09.10 00:52GBP/USD slips as weak US payroll revision keeps Fed cut bets intact
2025.09.10 00:12
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
EUR/USD falls to 1.1705 as US Dollar rebounds despite Fed cut bets
EUR/USD retreated over 0.48% on Tuesday, even though data from the United States (US) seems to confirm that the Federal Reserve (Fed) might reduce interest rates at next week's meeting.
New
2025.09.10 06:25Gold hits $3,674 record before US Dollar rebound caps rally
Gold price advanced for the third consecutive day and reached a new record high of $3,674, before retreating somewhat as a jump in US Treasury yields boosted appetite for the Greenback.
New
2025.09.10 03:13Silver Price Forecast: XAG/USD consolidates below $41.50 with bearish RSI divergence
Silver (XAG/USD) trades under pressure on Tuesday, retreating from recent highs as a modest rebound in the US Dollar (USD) and Treasury yields weighs on the metal. At the time of writing, spot prices are trading near $40.85, down over 1% on the day.
New
2025.09.10 03:10Canadian Dollar sinks after NFP revisions drive US Dollar higher
The Canadian Dollar (CAD) backslid on Tuesday, driven lower by a general improvement in US Dollar (USD) flows. The Loonie is down over one-quarter of one percent against the Greenback, with the US Dollar Index (DXY) climbing nearly 0.3% on the day for comparison.
New
2025.09.10 03:01Forex Today: Inflation comes to the fore with US PPI and China's CPI
The US Dollar (USD) managed to leave behind a drop to multi-week lows and regain some upside traction on Tuesday, while market participants assessed the NFP Annual Revision amid speculation of a larger rate cut by the Federal Reserve at its meeting next week.
New
2025.09.10 02:55Dow Jones Industrial Average froths as employment revisions support Fed rate cuts
The Dow Jones Industrial Average (DJIA) briefly tested the high side on Tuesday, bolstered by sharp downward revisions in US job hiring over the past 18 months.
New
2025.09.10 01:29USD/JPY reverses from four-week low as US jobs revision lifts Greenback
The Japanese Yen (JPY) trims gains against the US Dollar (USD) on Tuesday, with USD/JPY climbing back above the 147.00 psychological mark after briefly hitting its lowest level since August 14, around 146.31.
New
2025.09.10 00:52GBP/USD slips as weak US payroll revision keeps Fed cut bets intact
The GBP/USD retreats during the North American session after the latest Nonfarm Payrolls revision, was worse than expected, according to Bloomberg estimates. At the time of writing, the pair trades at 1.3542 after hitting a daily high of 1.3590, down 0.01%.
New
2025.09.10 00:12EUR/USD retreats from six-week highs as Greenback steadies after US NFP revision
The Euro (EUR) edges lower against the US Dollar (USD) on Tuesday, with EUR/USD snapping a two-day winning streak as the Greenback found renewed demand in the wake of the US Nonfarm Payrolls (NFP) benchmark revision.
New
2025.09.09 23:57France FX Today: The Euro in turbulent territory amid growing political uncertainty
The Euro (EUR) trades in a climate of growing nervousness on the markets on Monday, with the EUR/USD pair close to 1.1750, down a slight 0.15% on the session.
New
2025.09.09 23:47Disclaimer:
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
