Created
: 2025.11.18
- 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 flat lines around mid-1.4000s; downside potential seems limited
World FX news
Breaking news
USD/CAD flat lines around mid-1.4000s; downside potential seems limited
New
2025.11.18 11:30
2025.11.18 11:30
2025.11.18 11:30
- USD/CAD is seen consolidating in a narrow range amid mixed fundamental cues.
- Softer Canadian CPI print and a downtick in Crude Oil prices undermine the Loonie.
- Economic concerns cap USD and the pair, though less dovish Fed bets favor bulls.
The USD/CAD pair struggles to capitalize on the previous day's positive move to a one-and-a-half-week high and oscillates in a narrow range during the Asian session on Tuesday. Spot prices currently trade around mid-1.4000s, nearly unchanged for the day, though the supportive fundamental backdrop favors bullish traders.
The Canadian Dollar (USD) continues to be undermined by data released on Monday, which pointed to signs of easing domestic inflation pressures. In fact, Canada's headline Consumer Price Index (CPI) decelerated from 2.4% YoY to 2.2% in October. The reading, however, was slightly above the 2.1% expected. Apart from this, a softer tone surrounding Crude Oil prices is seen weighing on the commodity-linked Loonie and acting as a tailwind for the USD/CAD pair.
The US Dollar (USD), on the other hand, is seen consolidating the previous day's strong move up and remains well supported by less dovish Federal Reserve (Fed) expectations. Several Fed officials recently signaled caution on further monetary easing amid the lack of economic data, forcing investors to scale back their bets for a rate cut in December. This, along with the prevalent risk-off environment, benefits the safe-haven buck, lending some support to the USD/CAD pair.
The USD bulls, however, seem reluctant amid concerns about the weakening economic momentum on the back of the longest-ever US government shutdown. Moreover, traders opt to wait for the FOMC Minutes, due on Wednesday, and the delayed US Nonfarm Payrolls (NFP) report for October on Thursday for more cues about the Fed's rate-cut path. This, in turn, will play a key role in influencing the USD price dynamics and provide a fresh impetus to the USD/CAD pair.
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
: 2025.11.18
Related articles
USD/CAD flat lines around mid-1.4000s; downside potential seems limited
2025.11.18 11:29Japanese Yen refreshes nine-month low against USD amid BoJ rate hike doubts
2025.11.18 11:14NZD/USD declines to near 0.5650 as dovish RBNZ, weak growth overshadow US tariff relief
2025.11.18 11:07Australian Dollar holds losses following RBA Meeting Minutes
2025.11.18 11:01PBOC sets USD/CNY reference rate at 7.0856 vs. 7.0816 previous
2025.11.18 10:15GBP/JPY Price Forecast: Hits five week high near 204.50
2025.11.18 09:46
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
WTI retreats to near $59.50 on oversupply forecasts, sanctions could limit downside
West Texas Intermediate (WTI) Oil price stalls its three-day rally, slipping to around $59.60 per barrel during Asian hours on Tuesday. Prices softened amid renewed concerns about oversupply after an ING report projected a significant market surplus through 2026.
New
2025.11.18 11:58USD/CAD flat lines around mid-1.4000s; downside potential seems limited
The USD/CAD pair struggles to capitalize on the previous day's positive move to a one-and-a-half-week high and oscillates in a narrow range during the Asian session on Tuesday.
New
2025.11.18 11:29Japanese Yen refreshes nine-month low against USD amid BoJ rate hike doubts
The Japanese Yen (JPY) continues with its relative underperformance through the Asian session on Tuesday and drops to a fresh low since early February against a firmer US Dollar (USD).
New
2025.11.18 11:14NZD/USD declines to near 0.5650 as dovish RBNZ, weak growth overshadow US tariff relief
The NZD/USD pair drifts lower to around 0.5655 during the Asian trading hours on Tuesday. The New Zealand Dollar (NZD) softens against the US Dollar (USD) amid an imminent rate cut from the Reserve Bank of New Zealand (RBNZ).
New
2025.11.18 11:07Australian Dollar holds losses following RBA Meeting Minutes
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Tuesday after registering losses in the previous session. The AUD/USD pair holds losses after the Reserve Bank of Australia (RBA) published the Minutes of its November monetary policy meeting.
New
2025.11.18 11:01PBOC sets USD/CNY reference rate at 7.0856 vs. 7.0816 previous
The People's Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 7.0856 compared to the previous day's fix of 7.0816 and 7.1096 Reuters estimate.
New
2025.11.18 10:15Gold Price Forecast: XAU/USD declines below $4,050 on USD strength and hawkish Fed comments
Gold price (XAU/USD) extends the decline to around $4,030 during the early Asian session on Tuesday. The precious metal edges lower as traders dialed back expectations of a US interest rate cut next month.
New
2025.11.18 10:05GBP/JPY Price Forecast: Hits five week high near 204.50
The GBP/JPY rallies to a five-week high of 204.53 on Monday, up by 0.33% as the Japanese Yen weakens on growing tensions between China and Japan.
New
2025.11.18 09:46Japan's Katayama says stimulus has grown "sizable," but declines to give figure
Japan's Finance Minister Satsuki Katayama said on Tuesday that the government's upcoming economic stimulus package has become "sizable," but declined to disclose its exact scale.
New
2025.11.18 09:25Fed's Waller: Weak job market justifies rate cut in December
Federal Reserve (Fed) Governor Christopher Waller said that the US central bank should cut the interest rates when policymakers meet in December, Bloomberg reported late Monday. Waller added that he's grown concerned over the labor market and the sharp slowdown in hiring.
New
2025.11.18 08:54Disclaimer:
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
