USD/CAD trades with positive bias amid modest USD strength, remains below 1.4400

출처 Fxstreet
  • USD/CAD regains some positive traction and draws support from a combination of factors.
  • The divergent Fed-BoC policy outlook and renewed USD buying act as a tailwind for the pair.
  • An uptick in Crude Oil prices fails to benefit the Loonie or hinder a modest intraday move up. 

The USD/CAD pair attracts some dip-buyers at the start of a new week and for now, seems to have stalled its corrective slide from the highest level since March 2020 touched last Thursday. Spot prices stick to modest intraday gains through the first half of the European session and currently trade around the 1.4380 region, up less than 0.10% for the day.

The US Dollar (USD) regains some positive traction after Friday's pullback from a two-year top amid the Federal Reserve's (Fed) hawkish shift, signaling that it would slow the pace of rate cuts in 2025. The outlook remains supportive of elevated US Treasury bond yields and turns out to be a key factor acting as a tailwind for the buck. The Canadian Dollar (CAD), on the other hand, continues to be undermined by domestic political development and the Bank of Canada's (BoC) dovish stance. 

In fact, the Canadian central bank projected lower growth in the final quarter of this year and added that the possibility of new tariffs on Canadian exports to the US has made the economic outlook more unclear. Adding to this, Statistics Canada reported on Friday that Retail Sales in October were marginally lower than expected and were likely flat in November. That said, an uptick in Crude Oil prices lends some support to the commodity-linked Loonie and might cap the USD/CAD pair. 

Traders now look forward to the release of the Conference Board's US Consumer Confidence Index, which, along with the US bond yields, might influence the USD. Apart from this, Oil price dynamics might contribute to producing short-term trading opportunities around the USD/CAD pair. Nevertheless, the fundamental backdrop seems tilted in favor of the USD bulls and supports prospects for an extension of a well-established uptrend witnessed over the past two months or so.

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.

 

면책 조항: 정보 제공 목적으로만 사용됩니다. 과거 성과가 미래 결과를 보장하지 않습니다.
placeholder
2025년 주목할 나스닥 100 저평가 기술주 3Investing.com – 수요일 (현지시각) 연준(Fed)의 금리 발표를 앞두고 어제 각종 주요 지수들은 숨고르기에 들어갔다. 2024년 올 한해 각종 주요 지수들은 신고가를 경신하며 상승세를 이어가고 있다. 올해 초 16,300대였던 기술주 중심의 나스닥 100 지수는 현재 22,000대로 무려 34% 이상 상승하였다.나스닥 100은 S&P 500과
저자  Investing
2024 년 12 월 18 일
Investing.com – 수요일 (현지시각) 연준(Fed)의 금리 발표를 앞두고 어제 각종 주요 지수들은 숨고르기에 들어갔다. 2024년 올 한해 각종 주요 지수들은 신고가를 경신하며 상승세를 이어가고 있다. 올해 초 16,300대였던 기술주 중심의 나스닥 100 지수는 현재 22,000대로 무려 34% 이상 상승하였다.나스닥 100은 S&P 500과
placeholder
트럼프 전 대통령의 관세 불확실성에 암호화폐 시가총액 1,300억 달러 이상 증발암호화폐 시장은 지난주에 시가총액 기준 1,300억 달러 이상 감소했다.
저자  FXStreet
3 월 31 일 월요일
암호화폐 시장은 지난주에 시가총액 기준 1,300억 달러 이상 감소했다.
placeholder
2025년 4월 솔라나 가격 전망: FTX의 5월 30일 8억 달러 상환으로 SOL 120달러 반락 리스크 확대솔라나(SOL) 가격은 화요일 130달러 이하에서 횡보세를 보였으며, 4월 들어 FTX 매도 물량 우려가 커지면서 점차 하방 압력에 직면하고 있다.
저자  FXStreet
어제 02: 32
솔라나(SOL) 가격은 화요일 130달러 이하에서 횡보세를 보였으며, 4월 들어 FTX 매도 물량 우려가 커지면서 점차 하방 압력에 직면하고 있다.
placeholder
비트코인, 이더리움, 리플 가격 전망 TOP 3: 트럼프의 ‘해방의 날’을 앞두고 BTC, ETH, XRP 변동성 대비비트코인(BTC) 가격은 전날 3.16% 반등한 이후 수요일 $85,000 저항선 부근에서 소폭 하락 압력을 받는 모습을 보였다.
저자  FXStreet
어제 03: 55
비트코인(BTC) 가격은 전날 3.16% 반등한 이후 수요일 $85,000 저항선 부근에서 소폭 하락 압력을 받는 모습을 보였다.
placeholder
트럼프가 보복 관세를 시행하면서 비트코인과 주요 알트코인이 하락했다수요일, 도널드 트럼프 전 대통령이 각국의 관세율 절반에 해당하는 보복 관세를 발표한 이후 비트코인(BTC)을 포함한 전체 암호화폐 시장이 빠르게 조정을 받았다.
저자  FXStreet
10 시간 전
수요일, 도널드 트럼프 전 대통령이 각국의 관세율 절반에 해당하는 보복 관세를 발표한 이후 비트코인(BTC)을 포함한 전체 암호화폐 시장이 빠르게 조정을 받았다.
goTop
quote