Created
: 2025.09.11
- 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
Canadian Dollar falls once again as Loonie support withers
World FX news
Breaking news
Canadian Dollar falls once again as Loonie support withers
2025.09.11 03:12
2025.09.11 03:12
- The Canadian Dollar fell another 0.15% on Wednesday.
- The Loonie continues to decline against the Greenback.
- Fed rate cut bets continue to ride high, while economic fears weigh on CAD.
The Canadian Dollar eased further on Wednesday, declining around one-sixth of one percent and putting the USD/CAD pair on track to challenge its key 200-day Exponential Moving Average (EMA). Key US Producer Price Index (PPI) inflation data eased back in August, bolstering bets that the Federal Reserve (Fed) will get pushed into an economy-stabilizing rate-cutting cycle.
The Bank of Canada (BoC) is also broadly expected to begin cutting interest rates once again, but the Canadian economy is facing significant contraction as Canada and the US continue to quietly go to loggerheads on trade. The Canadian data docket remains restricted this week, leaving CAD traders to grapple with Thursday's US Consumer Price Index (CPI) inflation print and next week's key Fed interest rate decision.
Daily digest market movers: Canadian Dollar extends near-term declines
- The Canadian Dollar fell another 0.15% on Wednesday, pushing the USD/CAD pair into 1.3860.
- USD/CAD is now on pace to retest the 200-day EMA near 1.3870 for the second time inside of a month.
- The Loonie has lost ground against the Greenback for all but one of the last eight straight trading sessions.
- US PPI inflation eased in August, a welcome reprieve from inflationary pressure concerns and giving the Fed further leeway to deliver an interest rate cut next week.
- Key US inflation metrics still loom large on Thursday: CPI inflation, which has greater exposure to tariff impacts than PPI, is expected to tick higher once again in August.
Canadian Dollar price forecast
The Canadian Dollar is continuing its trend of shedding weight against the US Dollar. USD/CAD has risen a little over one percent bottom-to-top after hitting a swing low of 1.3726 at the tail end of August, and the pair is now heading into a technical consolidation zone near the 200-day EMA at 1.3871.
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
: 2025.09.11
Related articles
EUR/USD stays near 1.1750 ahead of potential US government shutdown, HICP inflation
10 minutes agoNZD/USD holds losses below 0.5800, as US government set to shutdown
2025.10.01 11:48USD/CAD consolidates above 1.3900; weaker Oil prices and dovish BoC lend support
2025.10.01 11:29S. Korea, US agree to avoid manipulating exchange rates to gain unfair competitive advantage
2025.10.01 11:04AUD/USD edges lower to near 0.6600 following Australia's data
2025.10.01 11:00USD/JPY holds steady near 148.00 mark; upside potential seems limited
2025.10.01 10:53
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 stays near 1.1750 ahead of potential US government shutdown, HICP inflation
EUR/USD moves little after three days of gains, trading around 1.1730 during the Asian hours on Wednesday. The pair remains steady ahead of the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) due later in the day.
New
2025.10.01 12:53Silver Price Forecast: XAG/USD remains above $47.00 amid increased safe-haven demand
Silver price (XAG/USD) holds more than 1% gains, trading around $47.15 per troy ounce at the time of writing. The price of the grey metal marked a fresh high of $47.57 during the early Asian hours on Wednesday.
New
2025.10.01 12:29WTI finds support near $62 as OPEC+ denies speculation of robust Oil production hike
West Texas Intermediate (WTI), futures on NYMEX, finds a temporary support near $62.00 during Wednesday's Asian session after sliding almost 4.40% in last two trading days.
New
2025.10.01 12:27NZD/USD holds losses below 0.5800, as US government set to shutdown
NZD/USD holds losses after registering gains in the previous session, trading around 0.5790 during the Asian hours on Wednesday.
New
2025.10.01 11:48USD/CAD consolidates above 1.3900; weaker Oil prices and dovish BoC lend support
The USD/CAD pair extends its sideways consolidative price move for the second straight day and trades above the 1.3900 mark during the Asian session on Wednesday.
New
2025.10.01 11:29S. Korea, US agree to avoid manipulating exchange rates to gain unfair competitive advantage
South Korea and the United States (US) released a joint statement on a foreign exchange policy agreement on Wednesday.
New
2025.10.01 11:04AUD/USD edges lower to near 0.6600 following Australia's data
The Australian Dollar (AUD) depreciates on Wednesday, with the AUD/USD pair trading around 0.6600 during the Asian hours. The AUD struggles following the data release from Australia.
New
2025.10.01 11:00USD/JPY holds steady near 148.00 mark; upside potential seems limited
The USD/JPY pair attracts some buyers during the Asian session on Wednesday and for now, seems to have snapped a three-day losing streak to sub-148.00 levels.
New
2025.10.01 10:53Fed's Logan: Plan to exercise caution in further reductions
Dallas Federal Reserve (Fed) President Lorie Logan said late Tuesday that he "plans to exercise caution in further reductions."
New
2025.10.01 10:49Gold Price Forecast: XAU/USD stays close to fresh highs above $3,850
Gold price (XAU/USD) continues its winning streak for the fifth successive session, hovering, during the Asian hours on Wednesday, around its fresh all-time high of $3,871 per troy ounce, which was recorded on Tuesday.
New
2025.10.01 10:14Disclaimer:
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
