- The USD/CAD reaches a new weekly maximum about 1,3700 in the middle of the fortress of the US dollar.
- Investors expect Trump’s announcement about new rates for more than seven countries.
- Canadian Prime Minister Mark Carney said his goal is to ensure an agreement with the US for July 21.
The USD/CAD pair extends its recovery movement to about 1,3700 during Wednesday’s European negotiation hours, the highest level seen in more than a week. The Loonie PAR bounced after reviewing a minimum of nine months around 1,3550, after the publication of non -agricultural payroll data (NFP) of the United States (USA) for June, which were better than projected.
At the time of writing, the US dollar index (DXY), which tracks the value of the dollar against six main currencies, maintains profits near the weekly maximum around 97.80.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.18% | 0.03% | 0.03% | 0.25% | 0.07% | 0.11% | -0.02% | |
| EUR | -0.18% | -0.13% | -0.14% | 0.08% | -0.07% | -0.07% | -0.08% | |
| GBP | -0.03% | 0.13% | 0.02% | 0.22% | -0.02% | -0.00% | -0.04% | |
| JPY | -0.03% | 0.14% | -0.02% | 0.19% | 0.04% | 0.06% | -0.04% | |
| CAD | -0.25% | -0.08% | -0.22% | -0.19% | -0.12% | -0.14% | -0.16% | |
| Aud | -0.07% | 0.07% | 0.02% | -0.04% | 0.12% | -0.00% | -0.01% | |
| NZD | -0.11% | 0.07% | 0.00% | -0.06% | 0.14% | 0.00% | -0.04% | |
| CHF | 0.02% | 0.08% | 0.04% | 0.04% | 0.16% | 0.01% | 0.04% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Investors expect the announcement of new rates for more than seven countries by US President Donald Trump, who have failed to close a commercial agreement during the reciprocal pause of 90 -day fees.
On Tuesday, President Trump proposed 50% rates on copper imports during the cabinet meeting, a movement that will boost national production.
Meanwhile, commercial conversations between the US and Canada seem to go well, since Canadian Prime Minister Mark Carney has indicated that he will seek an agreement in the next two weeks. “Aspiring to reach an agreement with the US on trade and security for July 21,” Bodyy told GlobalNews.CA on Sunday.
In the domestic field, investors expect the data of the Canadian labor market for June, which will be published on Friday. The unemployment rate is expected to accelerate to 7.1% from 7% observed in May. The cooling of labor market conditions could boost the need for cuts in interest rates by the Bank of Canada (BOC).
(This story was corrected on July 9 at 11:48 GMT to say, at the third point, that Mark Carney is the Prime Minister of Canada.)
Canadian dollar – frequent questions
The key factors that determine the contribution of the Canadian dollar (CAD) are the level of interest rates set by the Bank of Canada (BOC), the price of oil, the main export product of Canada, the health of its economy, inflation and commercial balance, which is the difference between the value of Canadian exports and that of its imports. Other factors are market confidence, that is, if investors bet on riskier assets (Risk-on) or seek safe assets (Risk-Off), being the positive risk-on CAD. As its largest commercial partner, the health of the US economy is also a key factor that influences the Canadian dollar.
The Canada Bank (BOC) exerts a significant influence on the Canadian dollar by setting the level of interest rates that banks can provide with each other. This influences the level of interest rates for everyone. The main objective of the BOC is to maintain inflation between 1% and 3% by adjusting interest rates to the loss. Relatively high interest rates are usually positive for CAD. The Bank of Canada can also use quantitative relaxation and hardening to influence credit conditions, being the first refusal for CAD and the second positive for CAD.
The price of oil is a key factor that influences the value of the Canadian dollar. Oil is the largest export in Canada, so the price of oil tends to have an immediate impact on the value of the CAD. Generally, if the price of oil rises, the CAD also rises, since the aggregate demand of the currency increases. The opposite occurs if the price of oil drops. The highest prices of oil also tend to give rise to a greater probability of a positive commercial balance, which also supports the CAD.
Although traditionally it has always been considered that inflation is a negative factor for a currency, since it reduces the value of money, the opposite has actually happened in modern times, with the relaxation of cross -border capital controls. Higher inflation usually leads to central banks to raise interest rates, which attracts more capital of world investors who are looking for a lucrative place to save their money. This increases the demand for the local currency, which in the case of Canada is the Canadian dollar.
The published macroeconomic data measure 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 confidence surveys can influence the CAD direction. A strong economy is good for the Canadian dollar. Not only attracts more foreign investment, but it can encourage the Bank of Canada to raise interest rates, which translates into a stronger currency. However, if the economic data is weak, the CAD is likely to fall.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
