- USD/CAD depreciated following reports of the incoming Trump administration considering gradual tariff hikes.
- Canada’s employment figures have lowered expectations for near-term interest rate cuts by the Bank of Canada.
- The US Dollar depreciated following the disappointing US December PPI data; CPI inflation data will be eyed on Wednesday.
USD/CAD stays silent after two days of losses, trading around 1.4360 during the Asian hours on Wednesday. The downside in the USD/CAD pair can be attributed to an improved outlook for foreign currency inflows, reduced US trade concerns, and hawkish expectations for the Bank of Canada (BoC).
Stronger-than-expected Canadian labor market data for December has diminished expectations for near-term interest rate cuts by the BoC. Employment in Canada surged by 91,000 in December, marking the largest gain since January 2023. Additionally, the unemployment rate dropped to 6.7%, down from 6.8% the previous month.
Furthermore, reports indicating the gradual implementation of proposed import tariffs by the incoming Trump administration have eased concerns for Canadian exporters, boosting demand for the Canadian Dollar (CAD).
The US Dollar Index (DXY), which measures the US Dollar’s performance against six major currencies, trades near 109.20. The Greenback faced challenges following the disappointing US December Producer Price Index (PPI) data. Market participants will keep an eye on the US Consumer Price Index (CPI) inflation data, which is due later on Wednesday.
US Producer Price Index for final demand rose 0.2% month-over-month in December after an 0.4% advance in November, softer than the 0.3% expected. The PPI climbed 3.3% YoY in December, the most since February 2023, after increasing 3.0% in November. This reading came in below the consensus of 3.4%.
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.01% | 0.00% | -0.42% | 0.00% | -0.01% | -0.03% | -0.05% | |
| EUR | -0.01% | -0.01% | -0.44% | -0.03% | -0.03% | -0.05% | -0.07% | |
| GBP | -0.00% | 0.01% | -0.44% | 0.00% | -0.02% | -0.05% | -0.04% | |
| JPY | 0.42% | 0.44% | 0.44% | 0.45% | 0.42% | 0.39% | 0.39% | |
| CAD | -0.00% | 0.03% | 0.00% | -0.45% | -0.01% | -0.03% | -0.04% | |
| AUD | 0.01% | 0.03% | 0.02% | -0.42% | 0.01% | -0.02% | -0.03% | |
| NZD | 0.03% | 0.05% | 0.05% | -0.39% | 0.03% | 0.02% | -0.01% | |
| CHF | 0.05% | 0.07% | 0.04% | -0.39% | 0.04% | 0.03% | 0.00% |
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
EUR/USD tests daily lows near 1.0350 on NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in January, dragging EUR/USD to the area of new lows near 1.0350.
GBP/USD flirts with daily lows near 1.2420, Dollar picks up pace
The continuation of the rebound in the US Dollar motivates GBP/USD to accelerates its losses and revisit the 1.2420 area, or daily lows, following the release of US NFP in January.
Gold tests fresh lows near $2,860 after NFP
Gold prices trim their early advance on Friday, deflating to the vicinity of the $2,860 region per ounce troy following the publication of the US labour market report in January.
Key takeaways from the January Payrolls report
The January payrolls number was weaker than expected at 143k, vs a reading of 175k. However, to counteract the downside surprise in the NFP number, the unemployment rate fell to 4% from 4.1%, and average wage data jumped by 0.5% on the month, to 4.1%, the market had been looking for a decline to 3.8%.
Top Trumps: The global economy’s House of Cards
The year has barely started and we are learning the hard way what Donald Trump’s second term in office means for markets, analysts and global policymakers. It's like living through an episode of the political thriller, House of Cards.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.