Created
: 2025.06.09
- 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 1.3700 due to US Dollar pullback, US-China discussion awaited
World FX news
Breaking news
USD/CAD remains below 1.3700 due to US Dollar pullback, US-China discussion awaited
2025.06.09 12:20
2025.06.09 12:20
- USD/CAD edges lower US Dollar corrects downward on Monday.
- US Treasury Secretary Scott Bessent is scheduled to meet with Chinese officials on Monday.
- The upbeat sentiment from the potential US-China trade talks eased concerns about the US-Canada tariff war.
USD/CAD retraces its gains from the previous session, trading around 1.3680 during the Asian hours on Monday. The pair edges lower as the US Dollar (USD) corrects downward after registering approximately 0.50% gains on Friday following United States (US) jobs data for May. The stronger-than-expected data raised the chances that the Federal Reserve (Fed) will keep its benchmark interest rate unchanged at its next two monetary policy meetings.
The US Bureau of Labor Statistics (BLS) reported that US Nonfarm Payrolls (NFP) climbed by 139,000 in May compared to April's 147,000 increase (revised from 177,000). This reading came in above the market consensus of 130,000. Moreover, the Unemployment Rate held steady at 4.2% and the Average Hourly Earnings remained unchanged at 3.9%, both readings came in stronger than the market expectation.
The US Dollar may gain ground amid easing trade-war jitters. US President Donald Trump and China's Xi Jinping spoke and agreed on Thursday that officials from both sides would soon resume trade negotiations aimed at ending the trade war. US Treasury Secretary Scott Bessent and two other Trump administration officials are set to meet with Chinese officials on Monday.
The positive sentiment surrounding the US-China trade talks also weakens concerns that US steel and aluminum tariffs would choke Canadian exports. Last week, Trump signed an executive order to double, from 25% to 50%, steel and aluminum tariffs. Prime Minister Mark Carney called the tariffs "unlawful and unjustified." Carney emphasized that the government is engaged in intensive and live negotiations to have these and other tariffs removed as part of a new economic and security partnership with the United States.
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
: 2025.06.09
Related articles
EUR/USD holds near highs despite tariff jitters, eyes on EU data next week
2025.07.05 05:59AUD/USD retreats as risk-off mood builds ahead of Trump's tariff deadline
2025.07.05 05:14USD/JPY Price Forecast: Eyes breakout as triangle narrows, but lacks momentum
2025.07.05 04:10NZD/USD risks further downside as Kiwi tests critical support at 0.6050
2025.07.05 04:04GBP/JPY retreats as safe-haven demand rises ahead of Trump's tariff deadline
2025.07.05 02:16BoE's Taylor: Disinflationary forces are building
2025.07.05 01:00
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 advance stalls near $37.00 as holiday lull masks bullish setup
Silver price traded sideways on Friday, remaining virtually unchanged at $36.84, due to thin trading volumes as US markets were closed for a holiday.
New
2025.07.05 06:32EUR/USD holds near highs despite tariff jitters, eyes on EU data next week
EUR/USD posted minimal gains of 0.18% on Friday amid thin liquidity conditions, as markets in the United States are closed due to the Independence Day holiday. The shared currency is poised to close the week with gains of 0.53% despite the release of solid US economic data this week.
New
2025.07.05 05:59AUD/USD retreats as risk-off mood builds ahead of Trump's tariff deadline
The Australian Dollar (AUD) weakened against the US Dollar (USD) on Friday amid a low-volume trading session and a risk-off tone ahead of US President Donald Trump's July 9 tariff deadline.
New
2025.07.05 05:14USD/JPY Price Forecast: Eyes breakout as triangle narrows, but lacks momentum
The US Dollar (USD) is trading slightly lower against the Japanese Yen (JPY) on Friday, with the USD/JPY hovering around 144.50 in subdued holiday-thinned conditions as US markets remain closed for Independence Day.
New
2025.07.05 04:10NZD/USD risks further downside as Kiwi tests critical support at 0.6050
The New Zealand Dollar (NZD) is weakening against the US Dollar (USD) on Friday as market participants weigh near-term resistance against a weakening bullish structure.
New
2025.07.05 04:04Gold price shines as USD slips, trade war fuels safe-haven demand
Gold price resumes its uptrend on Friday, poised to print gains of over 1.50% for the week as the US Dollar is on the back foot amid thin liquidity conditions following the closure of US markets in celebration of Independence Day. A slight escalation of the trade war boosted bullion prices.
New
2025.07.05 02:41GBP/JPY retreats as safe-haven demand rises ahead of Trump's tariff deadline
The Japanese Yen (JPY) is strengthening against the British Pound (GBP) on Friday as markets turn cautious ahead of the weekend.
New
2025.07.05 02:16WTI Crude Oil consolidates near key support, OPEC+ decision looms
West Texas Intermediate (WTI) Crude Oil prices remain subdued on Friday, extending losses from the previous day and hovering near the mid-$65s amid thin holiday trading, lingering demand concerns, and a lack of fresh catalysts.
New
2025.07.05 01:12BoE's Taylor: Disinflationary forces are building
Bank of England (BoE) rate-setter Alan Taylor noted late on Friday that downside pressures are continuing to build up underneath the UK's economy, signaling that early rate cuts may be needed ahead of a questionable forecasting period.
New
2025.07.05 01:00EUR/USD firms as tariffs and Trump's tax bill dominate headlines
The Euro (EUR) is holding modest gains against the US Dollar (USD) in thin trading conditions on Friday. With US markets closed in observance of Independence Day, liquidity is limited.
New
2025.07.05 00:35Disclaimer:
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
