- USD/CAD may gain ground as the US Dollar receives support from a hawkish policy shift by the Federal Reserve.
- Atlanta Fed President Raphael Bostic emphasized policymakers should proceed cautiously with policy decisions, citing uneven progress in bringing down inflation.
- Traders assess the impact of Canadian PM Trudeau's resignation as the country faces rising tariff threats and political uncertainty.
USD/CAD retraces its recent gains from the previous session, trading around 1.4350 during the European hours on Wednesday. However, the pair downside risks for the pair could be restrained as the US Dollar (USD) strengthens by a hawkish shift in investor sentiment regarding the Federal Reserve's (Fed) interest rate outlook, following robust US economic data.
The latest ISM services report suggested increased activity and rising prices in the United States (US), intensifying concerns about persistent inflation. Traders are now focused on the upcoming Federal Open Market Committee (FOMC) Minutes, scheduled for release later in the day, as well as the US jobs data, including the Nonfarm Payroll (NFP) report on Friday, for additional insights into policy direction.
According to Bloomberg, Federal Reserve Bank of Atlanta President Raphael Bostic stated on Tuesday that Fed officials should exercise caution with policy decisions due to uneven progress in reducing inflation. Bostic emphasized the need to lean toward keeping interest rates elevated to ensure the achievement of price stability goals.
Traders are evaluating the implications of Canadian Prime Minister (PM) Justin Trudeau's resignation after nine years in office, amid escalating tariff threats, political instability, and declining approval ratings, which could pave the way for snap elections. Trudeau announced on Monday that he would step down as the leader of Canada’s ruling Liberal Party once a successor is chosen.
On the data front, Canada’s seasonally adjusted Ivey Purchasing Managers Index rose to 54.7 in December, up from 52.3 in November but falling short of market expectations of 55.4. This indicates steady economic expansion for the fourth consecutive month. Meanwhile, traders are shifting their focus to the upcoming employment report, including December’s Net Change in Employment and Unemployment Rate, set for release on Friday.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Swiss Franc.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.19% | 0.25% | 0.22% | -0.03% | 0.07% | 0.15% | 0.26% | |
EUR | -0.19% | 0.06% | 0.02% | -0.21% | -0.12% | -0.03% | 0.07% | |
GBP | -0.25% | -0.06% | -0.02% | -0.27% | -0.18% | -0.09% | 0.01% | |
JPY | -0.22% | -0.02% | 0.02% | -0.25% | -0.16% | -0.08% | 0.03% | |
CAD | 0.03% | 0.21% | 0.27% | 0.25% | 0.09% | 0.18% | 0.28% | |
AUD | -0.07% | 0.12% | 0.18% | 0.16% | -0.09% | 0.09% | 0.18% | |
NZD | -0.15% | 0.03% | 0.09% | 0.08% | -0.18% | -0.09% | 0.10% | |
CHF | -0.26% | -0.07% | -0.01% | -0.03% | -0.28% | -0.18% | -0.10% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

NZD/USD slides below 0.5500 for the first time since March 2020, ahead of RBNZ
NZD/USD has touched a fresh low since March 2020 this Wednesday and looks to extend the downward momentum below the 0.5500 mark ahead of the RBNZ's expected 25 bps interest rate cut decision. The global meltdown on the back of tariffs-led recession fears and escalating US-China trade war continue to weigh on the Kiwi.

AUD/USD slumps to fresh low since March 2020 amid worsening US-China trade relations
AUD/USD dropped to its lowest level since March 2020 after officials confirmed that the US will proceed with a sweeping 104% tariff on Chinese imports starting this Wednesday. Besides the escalating US-China trade war, global recession fears continue to rattle financial markets worldwide and drive flows away from the risk-sensitive Aussie.

Gold price extends its consolidative price move near multi-week low
Gold price remains confined in a range near a multi-week low touched on Monday amid mixed fundamental cues. The widening global trade war and recession fears lead to an extended sell-off in equity markets worldwide. Moreover, bets for more aggressive Fed rate cuts and a weaker USD act as a tailwind for the bullion.

RBNZ set for another interest rate cut amid trade tariff uncertainty
The Reserve Bank of New Zealand is on track to deliver a 25 basis point cut to the Official Cash Rate, bringing down the key policy rate from 3.75% to 3.50% following its April monetary policy meeting on Wednesday.

The Fed is looking at a hefty price level
We are still in thrall to tariffs, the faux-macro “data” driving markets. The WSJ editorial board advised other countries to take their tariffs to zero so that Trump’s “reciprocal” tariffs will have to be zero, too. Cute, but no cigar.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.