- USD/CAD fights buyers to attract, although the combination of factors helps to limit the negative aspects.
- Bearish crude oil prices damage the creative and support the prices on the spot in the middle of the modest USD USD.
- The bets on aggressive fed interest rates should cover USD and increase the collection of the currency pair.
The USD/CAD pair enters the Bearish consolidation stage at the Asian session on Thursday and oscillates below the narrow strip below 1.3800, which is close to the lowest level after October 2025, touched on the previous day.
Its Canadian dollar (CAD) continues to support the victory of the Liberal Party in the Canadian Federal elections, which will strengthen the position of Prime Minister Mark Carney in the US trade negotiations. However, in a recent downturn Crude oil Prices up to almost three weeks shall be offset by support factors and keep the lid for the raw material -related Loonie any meaningful upside down. This with a modest US dollar (USD) increases the USD/CAD pair as a pair.
According to previous estimates, the US economy unexpectedly signed in the first quarter of 2025. In addition to persistent concerns, it is about the incorrect trade policy of US President Donald Trump and adds concerns about the global recession that is threatening, which is expected to teeth in fuel demand. This, with the expectations that many OPEC+ members refer to the acceleration of output hikes in June for the second month of consecutive months, the black fluid acts as a stoppage.
At the same time, the US Disparties confirms the GDP print with signs of inflationary pressure on the market to continue the cutting cycle of the Federal Reserve (FED) interest rates in June. In addition, traders are currently in pricing that the US Central Bank will lower the loan costs by the end of the year by year. This can prevent the USD from putting the aggressive stakes in the USD and indicates that the smallest resistance of the USD/CAD pair remains under the negative side.
Negative prospects are strengthened overnight throughout the last week's short -term trading range. Besides, oscillators per day chart Keep deep in a negative territory and prefer beard traders. Therefore, the movement of USD/CAD is more likely to be sold. Traders now look at the US macro data planned at the beginning of the new month, starting with ISM PMI production Thursday for a fresh thrust.
Canadian dollar
Canadian dollars (CAD) leading factors are the level of interest rates in the Canadian Bank (BOC), oil price, Canada's highest export, economic health, inflation and trade balance, which is the difference between Canadian export value versus its imports. Other factors include market-state investors accept more risky assets (risk-on) or looking for safe havens (risk-field)-CAD positive. As its largest trading partner, the health of the US economy is also a key factor that influences Canadian dollars.
The Canadian Bank (BOC) significantly influences Canadian dollars by setting the level of interest rates that banks can borrow to each other. This affects the level of all interest rates. The main purpose of BOC is to maintain inflation of 1-3%by adjusting interest rates up or down. Relatively higher interest rates tend to be positive about CAD. The Canadian Bank can also use quantitative alleviation and tightening with the former CAD-negative and CAD-positive CAD positive.
Oil price is a key factor that affects the value of the Canadian dollar. Oil is the largest export in Canada, so oil prices tend to affect the value of CAD immediately. In general, as the price of petroleum rises, the CAD rises, the total demand of the collection is increased. If the price of oil falls, the opposite is the opposite. Higher oil prices also cause a higher positive trade balance, which also supports CAD.
If inflation was traditionally considered to be a negative factor in the currency because it lowers the value of money, the opposite has been the opposite of the relaxation of cross -border capital controls today. Higher inflation tends to set up interest rates in central banks that attract more capital inflow to global investors looking for a profitable place to keep their money. This increases the demand for the local currency, which in Canada is Canadian.
Macroeconomic data releases the health of the economy and can affect Canadian dollars. Such indicators such as GDP, production and service PMI, employment and consumer emotion studies can all affect the CAD direction. A strong economy is good for the Canadian dollar. Not only does it attract more foreign investment, it can encourage Canadian bank to put interest rates that lead to a stronger currency. If economic data is weak, CAD is likely to fall.
