- USD/CAD is rising sharply to near 1.4430, with investors remaining cautious as Trump is expected to return to the White House on Monday.
- The outlook for the Canadian economy has weakened on the assumption that Trump will raise tariffs by 25%.
- Soft core CPI data for December forced traders to raise the Fed’s dovish assumptions.
During Friday’s session in North America, the USD/CAD pair rises to nearly 1.4430. The Loonie pair is strengthening amid a feeble Canadian dollar (CAD) and investors are becoming cautious as US President-elect Donald Trump takes the oath of office on Monday.
Canadian DOLLAR PRICE today
The table below shows the current percentage change of the Canadian Dollar (CAD) against the major listed currencies. The Canadian dollar was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | 0.40% | 0.25% | 0.22% | 0.43% | 0.43% | 0.16% | |
| EUR | -0.06% | 0.33% | 0.19% | 0.15% | 0.36% | 0.37% | 0.09% | |
| GBP | -0.40% | -0.33% | -0.15% | -0.18% | 0.03% | 0.03% | -0.24% | |
| JPY | -0.25% | -0.19% | 0.15% | -0.03% | 0.17% | 0.18% | -0.10% | |
| BOOR | -0.22% | -0.15% | 0.18% | 0.03% | 0.20% | 0.22% | -0.06% | |
| AUD | -0.43% | -0.36% | -0.03% | -0.17% | -0.20% | 0.00% | -0.27% | |
| NZD | -0.43% | -0.37% | -0.03% | -0.18% | -0.22% | -0.01% | -0.28% | |
| CHF | -0.16% | -0.09% | 0.24% | 0.10% | 0.06% | 0.27% | 0.28% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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 (basis)/USD (quote).
Investors expect that Trump’s most significant task will be to announce a up-to-date tariff plan, which may lead to a global trade war. The Canadian economy is expected to face a 2% augment in tariffs on exports to the U.S., which Trump previously mentioned.
Market participants expect that vast tariffs imposed by the US on Canada may worsen their economic prospects. “If Canada is hit with large tariffs and does not retaliate, the disinflationary effects will likely result in much greater monetary easing by the Bank of Canada (BoC),” said Scotiabank economist Derek Holt.
The BoC was one of the leading central banks to aggressively ease policy restrictions. According to a Reuters poll conducted between January 10 and 16, the BoC is almost certain to cut interest rates by 25 basis points (bps) to 3%.
Meanwhile, the U.S. dollar (USD) is rising as investors see an acceleration in bets from investors supporting more than one interest rate cut by the Federal Reserve (Fed). The U.S. Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is rising to nearly 109.15.
The Fed’s dovish stance increased after the release of the U.S. Consumer Price Index (CPI) report for December, which showed annual core inflation surprisingly declined.
