USD/CAD Forecast and News
Canadian Dollar outperforms its peers despite oil prices cool down
The Canadian Dollar outperforms its major currency peers, but trades flat against the US Dollar at around 1.3740 during the European trading session. The North American currency rises even as oil prices have slightly corrected, following multiple Iran-related events that eased supply concerns.
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USD/CAD Technical Overview
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Editors' picks
EUR/USD: War continues to steal the limelight, and not for good Premium
The EUR/USD pair bounced back in the last few days, settling for the week around 1.1530. The Iran war and central banks’ monetary policy announcements took centre stage, yet none was enough to impress speculative interest.
Gold: Major central banks’ hawkish tone weighs heavily Premium
Gold (XAU/USD) extended its slide into a third consecutive week and lost more than 6%, its worst weekly performance since March 2020, as major central banks adopted a hawkish tone because of the upside risks to inflation posed by rising energy prices.
GBP/USD: Pound Sterling tests 200-day SMA on the road to recovery Premium
The Pound Sterling (GBP) staged a late rebound from near three-month lows against the US Dollar (USD), testing the critical 1.3440 supply zone.
Bitcoin: The Fed kills the vibe
US Dollar: The Dollar stumbles, but the macro story hasn’t changed Premium
The US Dollar just reminded markets that trends are rarely linear.
Majors
Cryptocurrencies
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INFLUENTIAL ORGANIZATIONS AND PEOPLE FOR THE USD/CAD
Bank of Canada (BoC)
The Bank of Canada (BoC) is the nation's central bank. Its principal role, as defined in the Bank of Canada Act, is "to promote the economic and financial welfare of Canada." The bank's responsibilities are divided into four main areas:
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Monetary policy: The bank influences the supply of money in the economy, using its monetary policy framework to keep low and stable inflation.
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Financial system: The bank promotes safe, sound, and efficient financial systems within Canada and internationally, conducting transactions in financial markets to support these objectives.
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Currency: The bank designs, issues, and distributes Canada's banknotes.
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Funds management: The bank is the fiscal agent for the Government of Canada, managing its public debt programs and foreign exchange reserves.
The Bank of Canada (BoC) sets interest rates and manages monetary policy at eight scheduled meetings a year and ad hoc emergency meetings that are held as required. The BoC's primary mandate is to maintain price stability, which means keeping inflation at between 1-3%. Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Canadian Dollar (CAD) and vice versa. Other tools used include quantitative easing and tightening.
The official website, on X and YouTubeThe Federal Reserve (Fed)
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
Fed official website, on X and FacebookJerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. He was sworn in on May 23, 2022, for a second term as Chairman ending May 15, 2026. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and
Wikipedia
Tiff Macklem
Tiff Macklem was born in Montreal, Quebec, in 1961. He was appointed Governor of the Bank of Canada effective June 3, 2020, for a seven-year term. He graduated from Queen's University with a bachelor's degree in economics and completed a master's degree and a PhD in economics, both from the University of Western Ontario.
Before becoming Governor, Macklem served as a director of the Bank of Nova Scotia and chair of its risk committee. He is chair of the Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, and co-chair of the Financial Stability Board's Regional Consultative Group for the Americas.
Macklem's BOC's profile and Wikipedia
BOC NEWS & ANALYSIS
FED NEWS & ANALYSIS
About USD/CAD
THE IMPORTANCE OF OIL FOR THE ‘LOONIE’
The USD/CAD is one of the three "commodity pairs", alongside AUD/USD and NZD/USD. These pairs are closely tied to commodity price fluctuations, particularly Oil.
Canada, known as a resource-based economy, is a major producer and supplier of Oil. Its leading export market is the United States, making the Canadian dollar (CAD) particularly sensitive to US consumption data and economic health.
Rising Oil prices typically have a negative effect on the USD and a positive effect on the CAD.
ASSETS THAT INFLUENCE USD/CAD THE MOST
- Commodities: As previously mentioned, Oil is the primary focus, but traders should also consider Gold and Natural Gas.
- Currencies: The Japanese Yen (JPY) and the Euro (EUR). Another important group of influent pairs includes: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF and NZD/USD.
- Bonds: CSB (Canada Savings Bonds), CPB (Canada Premium Bonds) and T-Note 10Y (10-year US Treasury note).