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).
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