Created
: 2025.09.02
- 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 snaps win streak on dueling market holiday Monday
World FX news
Breaking news
Canadian Dollar snaps win streak on dueling market holiday Monday
2025.09.02 04:26
2025.09.02 04:26
- The Canadian Dollar snapped it's recent win streak against the US Dollar on Monday.
- Both Canadian and US markets are dark for the long weekend holiday.
- September opens up with an early flash of potential Loonie weakness.
The Canadian Dollar (CAD) eased lower against the US Dollar (USD) on Monday, albeit on notably weak market flows, shedding under one-tenth of one percent against the Greenback. Canadian and US markets are shuttered functionally across the board thanks to a shared Labor Day holiday, and markets will be waiting for North American markets to return from their long weekend in full force on Tuesday.
The Canadian Dollar ran out of runway on Monday, snapping a four-session winning streak and posting its first loss against the Greenback in exactly one week. The Canadian economy is broadly slowing down faster than analysts expected, thanks to a slow-motion trade war with the US and US President Donald Trump's high tariffs. Damage is expexted to continue pressing down on Canadian economic activity, and despite market hopes for further central bank interest rate cuts on both sides of the 49th parallel, the Loonie is still running largely at the mercy of broad-market US Dollar flows.
Daily digest market movers: Canadian Dollar stumbles ahead of US-data heavy week
- The Canadian Dollar ended it's near-term winning streak against the US Dollar.
- USD/CAD has found a messy technical floor near 1.3740.
- Both Canadian and US labor data is due at the end of the week, but US Nonfarm Payrolls (NFP) will handily dominate investor attention spans as the days tick toward Friday.
- Both Canadian and US net job numbers are expected to continue slowing down, bolstering bets of central bank cuts from both the Bank of Canada (BoC) and the Federal Reserve (Fed).
- Canadian economic data remains muted through the majority of the week, leaving US data front and center.
Canadian Dollar price forecast
The Canadian Dollar's near-term bull run looks set to draw to a close, with one-sided Greenback weakness poised to run out of runway. USD/CAD has fallen over 1.4% top-to-bottom from two-week highs near 1.3930 to fresh lows near 1.3725. The 200-day Exponential Moving Average (EMA) remains a key technical ceiling on bearish Loonie flows, but CAD momentum remains deeply constrained.
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
: 2025.09.02
Related articles
Fed's Goolsbee warns against series of rate cuts
2025.09.25 04:31Forex Today: SNB rate call, US GDP, Japan Tokyo CP inflation on deck
2025.09.25 03:45USD/JPY hits three-week high as Greenback rebounds, BoJ minutes in focus
2025.09.25 03:34BoE's Greene: The supply side needs more attention
2025.09.25 02:04AUD/USD slips to 0.6590 as Powell highlights dual mandate challenges
2025.09.25 00:20Mexico FX Today: Peso steady as Banxico prepares new rate cut
2025.09.24 23:52
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
Fed's Goolsbee warns against series of rate cuts
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee broke away from the overarching narrative of consecutive Fed rate cuts heading through the end of the year, widening the narrative gap between Fed incumbents and Donald Trump's newly-minted Fed plant Stephen Miran.
New
2025.09.25 04:31Gold retreats from record high as Powell cools cut bets, US Dollar strengthens
Gold (XAU/USD) price turns negatively on Wednesday after rallying for three consecutive trading days, which pushed the yellow metal to a record high at $3,791, before retreating somewhat as investors digest Federal Resever (Fed) Chair Jerome Powell's comments, which seem to pour cold water on rate c
New
2025.09.25 04:11Forex Today: SNB rate call, US GDP, Japan Tokyo CP inflation on deck
The US Dollar lurched higher on Wednesday, sparked by a fresh round of risk aversion across the broader markets. Central banks worldwide are grappling with two-speed economies of varying degrees, and many are battling a steepening slowdown in economic activity.
New
2025.09.25 03:45USD/JPY hits three-week high as Greenback rebounds, BoJ minutes in focus
The Japanese Yen (JPY) weakens sharply against the US Dollar (USD) on Wednesday, with USD/JPY advancing to its highest level since September 3.
New
2025.09.25 03:34Dow Jones Industrial Average falls for a second day as tech rally hesitates
The Dow Jones Industrial Average (DJIA) followed the broader market lower on Wednesday, shedding 270 points at its lowest. Investors are taking profits and trimming their exposure to the AI-fueled tech rally ahead of the latest US employment figures and inflation data.
New
2025.09.25 02:51BoE's Greene: The supply side needs more attention
During a speech at the Adam Smith Business School of the University of Glasgow, Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greenebroke away from "tradiitional" policy planning rhetoric, warning that global central banks need to pivot into a different perspective on managing s
New
2025.09.25 02:04WTI climbs to three-week high as EIA draw and geopolitical risks lift Oil prices
West Texas Intermediate (WTI) Crude Oil extends its rebound for the second straight day on Wednesday, recovering from its weakest level in nearly two weeks, hit earlier on Monday.
New
2025.09.25 01:02AUD/USD slips to 0.6590 as Powell highlights dual mandate challenges
The Australian Dollar drops versus the US Dollar on Wednesday amid the lack of catalyst, following remarks by the Fed Chair Jerome Powell, who said that the Fed would continue to balance the dual mandate of the central bank. The AUD/USD trades at 0.6590, down 0.11%.
New
2025.09.25 00:20Mexico FX Today: Peso steady as Banxico prepares new rate cut
The Mexican Peso (MXN) edges slightly lower against the US Dollar (USD) on Wednesday, with the USD/MXN pair trading at 18.41 at the time of writing, up 0.3% on the day.
New
2025.09.24 23:52GBP/JPY trades sideways as BoE Bailey sees scope for lower rates
The British Pound (GBP) trades sideways against the Japanese Yen (JPY) on Wednesday, with GBP/JPY modestly higher, rebounding after briefly slipping to its lowest level since September 9 on Tuesday.
New
2025.09.24 23:48Disclaimer:
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
