Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
USDCAD Price Tumbling as Canadian Dollar Benefits From Rising Oil Prices

USDCAD Price Tumbling as Canadian Dollar Benefits From Rising Oil Prices

Martin Essex, MSTA,
What's on this page

Canadian Dollar price, news and analysis:

USDCAD price under pressure

The Canadian Dollar is continuing to strengthen as oil prices rebound, speculation grows that the Bank of Canada may stick to its plan to raise interest rates when it announces its rate decision Wednesday and the US Dollar weakens.

As the chart below shows, USDCAD has fallen to its lowest level for just over a month and is now in a steep downward trend.

USDCAD Price Chart, Daily Timeframe (October 9, 2018 – January 8, 2019)

Latest USDCAD price chart.

Chart by IG (You can click on it for a larger image)

Canada is a major oil exporter so is benefiting from the recent rally in oil prices, which have been helped by a weaker US Dollar, less pessimism about the US-China trade dispute, firmer equity prices and a report in The Wall Street Journal that Saudi Arabia may cut crude oil exports to 7.1 million barrels a day by the end of January.

Canadian interest rates

In addition, the Bank of Canada is expected to report this week that it is sticking to its plans to raise interest rates even though a decision to leave its benchmark rate at 1.75% Wednesday is widely forecast.

These factors combined have broken the upward trend in USDCAD in place since October last year and a potential technical target is now the lows at 1.3160/4 reached in early December.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES