* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Tuesday, October 14, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Mexican singer Pedro Fernández to make Ave Fénix tour stop in Stockton. Tickets, schedule – Yahoo

    Mexican Singer Pedro Fernández Brings the Ave Fénix Tour to Stockton – Don’t Miss It!

    Flutter Entertainment’s SWOT Analysis: Uncovering the Growth Potential Amid Challenges

    Dylan Efron Shares Sweet ‘DWTS’ Rehearsal Photos Featuring His Little Sister Olivia – yahoo.com

    Dylan Efron’s Heartwarming ‘DWTS’ Rehearsal Moments with Little Sister Olivia

    Diane Keaton, Oscar-Winning Star of ‘Annie Hall’ and ‘The Godfather,’ Dies at 79 – Yahoo

    Diane Keaton, Oscar-Winning Star of ‘Annie Hall’ and ‘The Godfather,’ Dies at 79 – Yahoo

    THE VAMPIRE LESTAT Shares First Look Teaser Trailer (And It’s Fangtastic) – Yahoo

    THE VAMPIRE LESTAT Shares First Look Teaser Trailer (And It’s Fangtastic) – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Tracking DNA and RNA Together To Unlock Disease Insights – Technology Networks

    Unlocking Disease Insights by Tracking DNA and RNA Together

    The future of battery technology – Engineer Live

    Revolutionizing Energy: Exploring the Future of Battery Technology

    How Can Boosting Your Travel Experience with Less Technology Lead to a More Relaxing Vacation? All You Need to Know About This Latest Trend – Travel And Tour World

    How Can Boosting Your Travel Experience with Less Technology Lead to a More Relaxing Vacation? All You Need to Know About This Latest Trend – Travel And Tour World

    Davenport CornCon Cybersecurity Conference helps students explore technology, AI use – KWQC

    Davenport CornCon Cybersecurity Conference Ignites Student Passion for Technology and AI Innovations

    Inside Europe’s military technology resurgence – NBC News

    Europe’s Bold Comeback: Unveiling the Rise of Cutting-Edge Military Technology

    Vicor Corporation: Great Technology, Execution Trapped In Time (NASDAQ:VICR) – Seeking Alpha

    Vicor Corporation: Innovative Technology Hindered by Lackluster Execution

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Mexican singer Pedro Fernández to make Ave Fénix tour stop in Stockton. Tickets, schedule – Yahoo

    Mexican Singer Pedro Fernández Brings the Ave Fénix Tour to Stockton – Don’t Miss It!

    Flutter Entertainment’s SWOT Analysis: Uncovering the Growth Potential Amid Challenges

    Dylan Efron Shares Sweet ‘DWTS’ Rehearsal Photos Featuring His Little Sister Olivia – yahoo.com

    Dylan Efron’s Heartwarming ‘DWTS’ Rehearsal Moments with Little Sister Olivia

    Diane Keaton, Oscar-Winning Star of ‘Annie Hall’ and ‘The Godfather,’ Dies at 79 – Yahoo

    Diane Keaton, Oscar-Winning Star of ‘Annie Hall’ and ‘The Godfather,’ Dies at 79 – Yahoo

    THE VAMPIRE LESTAT Shares First Look Teaser Trailer (And It’s Fangtastic) – Yahoo

    THE VAMPIRE LESTAT Shares First Look Teaser Trailer (And It’s Fangtastic) – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Tracking DNA and RNA Together To Unlock Disease Insights – Technology Networks

    Unlocking Disease Insights by Tracking DNA and RNA Together

    The future of battery technology – Engineer Live

    Revolutionizing Energy: Exploring the Future of Battery Technology

    How Can Boosting Your Travel Experience with Less Technology Lead to a More Relaxing Vacation? All You Need to Know About This Latest Trend – Travel And Tour World

    How Can Boosting Your Travel Experience with Less Technology Lead to a More Relaxing Vacation? All You Need to Know About This Latest Trend – Travel And Tour World

    Davenport CornCon Cybersecurity Conference helps students explore technology, AI use – KWQC

    Davenport CornCon Cybersecurity Conference Ignites Student Passion for Technology and AI Innovations

    Inside Europe’s military technology resurgence – NBC News

    Europe’s Bold Comeback: Unveiling the Rise of Cutting-Edge Military Technology

    Vicor Corporation: Great Technology, Execution Trapped In Time (NASDAQ:VICR) – Seeking Alpha

    Vicor Corporation: Innovative Technology Hindered by Lackluster Execution

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

USD/CAD side-steps geopolitical volatility to trade little changed

April 20, 2024
in Business
USD/CAD side-steps geopolitical volatility to trade little changed
Share on FacebookShare on Twitter

USD/CAD avoids the worst excesses of volatility in markets from the reported retaliation of Israel against Iran.
The flight to safety boosted the US Dollar but the Canadian Dollar benefited equally from surging Oil prices. 
Interest rate differentials remain a bullish factor for the pair as the Fed delays expected interest rate cuts.  

USD/CAD is trading in the 1.3750s after edging lower on Friday. The pair has been shielded by the worst excesses of volatility witnessed in markets brought on by the escalating geopolitical situation in the Middle East. 

The surge in risk aversion after reports of Israel’s retaliatory attacks on Iran have supported the safe-haven US Dollar (USD) along with the other usual suspects: Gold, JPY, CHF. 

Yet the impact on USD/CAD was muted due to the Middle East conflict’s impact on Oil, and the Canadian Dollar’s sensitivity to Oil prices. 

WTI Crude Oil prices rose over 4.0% from $81.80 to $85.50 following the news of Israel’s purported attack on Iran. This strengthened CAD because Oil is the country’s primary export. 

Beyond the Israeli-Iran conflict, however, other factors are also expected to drive up the price of Oil, according to some analysts. 

One factor is the US’s increasingly long list of Oil producing countries who are potential targets for sanctions. 

“Less Oil from Iran and Venezuela is likely to reach the market in the coming months, as the US intends to tighten Oil sanctions against Iran and reinstate the Oil sanctions against Venezuela that have been eased in the meantime,” says Commerzbank in a recent note. 

Commerzbank sees other bullish factors for Crude in the form of continued OPEC+ supply constraints and increased broad demand for gasoline due to the likelihood that the European Central Bank (ECB) and Federal Reserve (Fed) will start cutting interest rates before the end of the year. 

From the perspective of Oil, the outlook favors the CAD side of the USD/CAD pair, and is therefore a bearish factor for USD/CAD.  

Diverging outlook on interest rates could support USD/CAD

USD/CAD remains in a short and medium-term uptrend despite the negative spillover effect from Oil prices.

The reason for this is the diverging outlook on the future path of interest rates in the US and Canada. Interest rates are a key FX driver because global capital tends to flow to where interest rates are higher all other things being equal. 

This has supported the US Dollar most recently during its early April rally and provided a bullish backwind for USD/CAD. 

Interest rates in Canada are expected to fall in the summer amid declining inflation and slower growth but the reverse is increasingly the case in the US. 

In the US stronger macroeconomic data, persistently high inflation and a tight labor market are seen as factors likely to keep interest rates comparatively higher for longer. 

From expecting three 0.25% rate cuts in 2024 at the start of the year when inflation was tracking lower, the Federal Reserve is now indicating it may only cut twice or perhaps once. Some Federal Reserve officials are even signaling that the central bank should keep interest rates at their present level until more evidence of inflation coming down is available. 

Market based indicators of the number of rate cuts have also changed radically with odds now showing the most likely month for the Fed to implement a first rate cut is September, when previously expectations had been zeroed in on June. 

The situation in Canada is very different. There, inflation is still tracking lower and the probability of the Bank of Canada (BoC) cutting interest rates by 0.25% in June stands at 70%, according to analysts at Brown Brothers Harriman. 

Indeed, on Tuesday, BoC governor Tiff Macklem stated, “there’s some downward momentum in underlying inflation.” 

Canadian Consumer Price Index (CPI) data backs this up. Whilst headline inflation crept higher in March – to 2.9% from 2.8% it remains below the BoC’s 3.0% target. In addition, the main drivers were rising gasoline prices and the rising US mortgage rates used by many Canadian property owners, according to Tradingeconomics.com. 

Both the core-trim and core-median measures of the Consumer Price Index (CPI), however, showed signs of easing – to 3.1% (the lowest since June 2021) and 2.8% (matching the July 2021 low), respectively – according to BBH. 

Canadian Dollar FAQs

The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.

The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.

The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.

While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.

Macroeconomic data releases gauge 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 sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

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.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-cad-side-steps-geopolitical-geopolitical-volatility-to-trade-little-changed-202404191030

Tags: businessGeopoliticalside-steps
Previous Post

EUR/USD recovers after initially selling off on Middle East tensions

Next Post

US Dollar slides lower with markets reversing safe have inflows on Middle Eastern tensions

CVYS reiterates ban on activities threatening ecology and public order – Nagaland Tribune

CVYS Takes a Strong Stand to Protect Ecology and Public Safety

October 14, 2025
Inaugural Implementation Science Symposium Highlights Excitement for Burgeoning Discipline – Geisel School of Medicine at Dartmouth

Inaugural Implementation Science Symposium Ignites Excitement for Emerging Field

October 14, 2025
Scientists find the brain’s hidden pulse that may predict Alzheimer’s – ScienceDaily

Scientists find the brain’s hidden pulse that may predict Alzheimer’s – ScienceDaily

October 14, 2025
You know you’re smarter than someone if these 10 thought patterns are obvious to you but not them – VegOut

10 Thought Patterns That Show You’re Smarter Than Most People

October 14, 2025
New Strider Report Reveals Scope and Scale of U.S. Academic Research Done in Collaboration with PLA-Affiliated Entities on STEM Technologies – PR Newswire

New Strider Report Reveals Widespread U.S. Academic Collaborations with PLA-Linked Entities in STEM Technologies

October 14, 2025
India play Singapore in must-win AFC Asian Cup qualifier; Denmark Open Super 750 begins: Indian Sports LIVE, October 14 – ESPN

India Takes on Singapore in High-Stakes AFC Asian Cup Qualifier as Denmark Super 750 Tennis Tournament Begins: Indian Sports LIVE, October 14

October 14, 2025
From Iceland to Cape Verde: The 5 smallest countries ever to reach the World Cup – ABC News – Breaking News, Latest News and Videos

From Iceland to Cape Verde: Discover the 5 Smallest Countries Ever to Shine at the World Cup

October 14, 2025
Economy travellers on Virgin flights face new restrictions on luggage as part of the airline’s plan to simplify boarding. – facebook.com

Virgin Unveils New Luggage Rules to Speed Up Boarding for Economy Passengers

October 14, 2025
Mexican singer Pedro Fernández to make Ave Fénix tour stop in Stockton. Tickets, schedule – Yahoo

Mexican Singer Pedro Fernández Brings the Ave Fénix Tour to Stockton – Don’t Miss It!

October 14, 2025
Downtown hosts history, health events – Pine Bluff Commercial News

Downtown Comes Alive with Exciting History and Health Events

October 14, 2025

Categories

Archives

October 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Sep    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (867)
  • Economy (888)
  • Entertainment (21,760)
  • General (17,593)
  • Health (9,930)
  • Lifestyle (901)
  • News (22,149)
  • People (889)
  • Politics (898)
  • Science (16,099)
  • Sports (21,388)
  • Technology (15,868)
  • World (871)

Recent News

CVYS reiterates ban on activities threatening ecology and public order – Nagaland Tribune

CVYS Takes a Strong Stand to Protect Ecology and Public Safety

October 14, 2025
Inaugural Implementation Science Symposium Highlights Excitement for Burgeoning Discipline – Geisel School of Medicine at Dartmouth

Inaugural Implementation Science Symposium Ignites Excitement for Emerging Field

October 14, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version