Created
: 2025.10.16
- 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 remains below 1.4050 due to ongoing US-China trade tensions
World FX news
Breaking news
USD/CAD remains below 1.4050 due to ongoing US-China trade tensions
New
2025.10.16 12:43
2025.10.16 12:43
2025.10.16 12:43
- USD/CAD depreciates as the US Dollar weakens due to the US-China feud.
- CME FedWatch Tool indicates pricing in a 98% chance of an October Fed rate cut and 93% odds of another in December.
- The CAD may gain support from potential upside in crude prices following India's halt of Russian Oil imports.
USD/CAD extends its losses for the second successive session, trading around 1.4030 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) struggles amid market caution, driven by the escalating United States (US)-China trade tensions, the world's two largest economies.
US President Donald Trump said on Wednesday that he saw the US as in a trade war with China, even as Treasury Secretary Scott Bessent proposed a longer pause on high tariffs on Chinese goods to resolve a conflict over critical minerals.
The Greenback also faced challenges after US Federal Reserve (Fed) Chair Jerome Powell stated on Tuesday that the central bank is on track to deliver another quarter-point interest-rate reduction later this month, even as a government shutdown significantly reduces its read on the economy. Powell highlighted the low pace of hiring and noted that it may weaken further. The CME FedWatch Tool indicates that markets are now pricing in nearly a 98% chance of a Fed rate cut in October and a 93% possibility of another reduction in December.
The downside of the USD/CAD pair could also be attributed to the positive sentiment surrounding the Oil prices, which provides support for the commodity-linked Canadian Dollar (CAD). It is worth noting that Canada is the largest Oil exporter to the United States (US).
West Texas Intermediate (WTI) Oil price trades around $58.30 per barrel at the time of writing. Crude Oil prices may gain ground as US President Donald Trump announced that Indian Prime Minister Narendra Modi had pledged his country would stop buying Russian Oil, per Reuters.
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
: 2025.10.16
Related articles
WTI drifts higher to near $58.40 as Trump says India will stop importing Russian oil
34 minutes agoCrude Oil price today: WTI price bearish at European opening
2025.10.16 15:03USD/CAD remains below 1.4050 due to ongoing US-China trade tensions
2025.10.16 12:43WTI holds losses near $58.00, downside seems limited as India halts Russian Oil imports
2025.10.16 11:52US President Donald Trump says India will stop buying Russian oil
2025.10.16 10:08WTI steadies near $58 as supply glut fears, US-China trade tensions weigh
2025.10.15 20:10
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
Silver Price Forecast: XAG/USD stands tall above $52.50 in cautious markets
Silver (XAG/USD) rally was capped a few cents below the $55.00 level on Wednesday, pulling lower on profit-taking.
New
2025.10.16 16:21Forex Today: Markets await comments from central bankers, Gold renews record-high
Here is what you need to know on Thursday, October 16:
New
2025.10.16 16:16WTI drifts higher to near $58.40 as Trump says India will stop importing Russian oil
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $58.40 during the early European trading hours on Thursday. The WTI recovers from a five-month low after US President Donald Trump said Indian Prime Minister Narendra Modi had vowed to halt purchases of Russian barrels.
New
2025.10.16 15:56FX option expiries for Oct 16 NY cut
FX option expiries for Oct 16 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.10.16 15:28Crude Oil price today: WTI price bearish at European opening
West Texas Intermediate (WTI) Oil price falls on Thursday, early in the European session. WTI trades at $58.30 per barrel, down from Wednesday's close at $58.33.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $62.18 after its previous daily close at $62.23.
New
2025.10.16 15:03USD/CHF bounces off two-week low, down a little above mid-0.7900s
The USD/CHF pair continues losing ground for the third straight day - also marking the fourth day of a negative move in the previous five - and drops to an over two-week low during the Asian session on Thursday.
New
2025.10.16 14:54EUR/JPY Price Forecast: First upside barrier emerges near 177.00
The EUR/JPY cross gains ground near 176.15 during the early European session on Thursday. The Japanese Yen (JPY) weakens against the Euro (EUR) as political uncertainty in Japan would set the stage for the Bank of Japan (BoJ) to delay raising interest rates.
New
2025.10.16 14:49EUR/GBP steadies near 0.8700 ahead of UK economic data
EUR/GBP moves little after registering losses in the previous session, trading around 0.8690 during the Asian hours on Thursday.
New
2025.10.16 14:43EUR/USD rises further to near 1.1670 as US Dollar continues to decline
The EUR/USD pair extends its two-day upside move to near 1.1670 during the Asian trading session on Thursday.
New
2025.10.16 14:22BoJ's Tamura: Central bank should push rates closer toward levels deemed neutral
The Bank of Japan (BoJ) board member Naoki Tamura said on Thursday that the central bank should push the interest rates closer toward levels deemed neutral.
New
2025.10.16 14:22Disclaimer:
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
