Canadian Dollar roils on Tuesday after upswing in Canadian CPI inflation (2024)

  • Canadian Dollar whipsaws against Greenback on CPI Tuesday.
  • Canada reported an upswing in CPI inflation in May.
  • Additional focus to fall on July inflation print in the runup to BoC July rate call.

The Canadian Dollar climbed on Tuesday after Canadian Consumer Price Index (CPI) inflation ticked higher in May. Despite the upswing in CPI growth, the CAD whipsawed against the US Dollar during the American market session, setting a fresh 14-day high before settling back to flat on Tuesday.

Canada also printed an upward surge in the Bank of Canada’s (BoC) CPI Core reading in May. With CPI inflation snapping higher following the BoC’s recent rate cut, renewed focus will be put on June’s upcoming CPI print ahead of the Canadian central bank’s rate call slated for July 24.

Daily digest market movers: Canadian CPI upswing sends CAD higher

  • Canadian CPI inflation rose to 2.9% YoY in May, erasing the forecasted downtick to 2.6% from the previous 2.7%.
  • MoM CPI climbed to 0.6% in May, coming in well above the forecast 0.3% and accelerating from the previous 0.5%.
  • BoC’s own CPI Core also rose to 0.6% MoM versus the forecast hold at 0.2%.
  • A snap rise in Canadian inflation follows a recent quarter-point cut from the BoC, which could spark concerns that the Canadian central bank started cutting too early.
  • US CB Consumer Confidence survey eased to 100.4 from 102.0, a slightly better print than the expected 100.0.

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.


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).

Technical analysis: Canadian Dollar gains some ground amid churn, but gains remain tepid

The Canadian Dollar (CAD) briefly rose to a fresh two-week high against the US Dollar on Tuesday before falling back within the day’s opening range. The CAD also eked out gains against the Euro and the Australian Dollar, climbing around one-fifth of one percent against each.

USD/CAD tumbled to a new 14-day low of 1.3624 before snapping back to Tuesday’s opening bids near 1.3660. The pair is caught in near-term chart churn as bidders struggle to break through intraday technical resistance at 1.3680.

Despite grinding out a -1.2% decline top-to-bottom from early June’s peak at 1.3791, the CAD looks set to run out of gas against the US Dollar with USD/CAD finding a price floor near 1.3650. Daily candles continue to tread water in a consolidation pattern north of the 200-day Exponential Moving Average (EMA) at 1.3582.

USD/CAD hourly chartCanadian Dollar roils on Tuesday after upswing in Canadian CPI inflation (1)

USD/CAD daily chartCanadian Dollar roils on Tuesday after upswing in Canadian CPI inflation (2)

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.

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Canadian Dollar roils on Tuesday after upswing in Canadian CPI inflation (2024)


Is the Canadian dollar going up or down against the US Dollar? ›

Canadian Dollar to US Dollar Exchange Rate is at a current level of 0.7336, down from 0.7340 the previous market day and down from 0.7489 one year ago. This is a change of -0.05% from the previous market day and -2.04% from one year ago.

What is the Canadian inflation rate today? ›

Current Canada Inflation Rate: 2.9%

Is the US Dollar stronger than the Canadian dollar? ›

US Dollar to Canadian Dollar Exchange Rate is at a current level of 1.363, up from 1.363 the previous market day and up from 1.347 one year ago. This is a change of 0.02% from the previous market day and 1.19% from one year ago.

Where is a Canadian dollar worth the most? ›

High-Value Destinations for Canadian Travellers
  • Cuba. Dollar for dollar, you can't beat an all-inclusive vacation to Cuba. ...
  • Iceland. Iceland is a pretty incredible place, just ask John K., recent visitor and AMA member. ...
  • Poland. Since Poland has yet to adopt the euro, travel remains a comparative bargain. ...
  • Bali. ...
  • Turkey.

How much is $100 Canadian in the US today? ›

Canadian Dollars to US Dollars: exchange rates today
100 CAD73.20 USD
250 CAD183.01 USD
300 CAD219.61 USD
500 CAD366.02 USD
8 more rows

What is the Canadian dollar rate prediction for tomorrow? ›

The CAD to INR exchange rate is forecasted to decrease by -0.27% in the next 24 hours, dropping from the current rate of ₹ 61.23 to ₹ 61.06. Currently, the sentiment in the CAD/INR market is estimated to be bullish. Disclaimer: This is not investment advice.

Is inflation higher in Canada or USA? ›

Inflation readings have started to diverge as well. The headline consumer price index in the U.S. has grown at an annualized 4.3% from December to April, compared to just 1.3% in Canada.

What is the prediction for inflation in Canada? ›

Private sector forecasters expect inflation to remain around 3 per cent through the first half of 2024 and then to gradually decline to close to 2 per cent by the end of the year (Chart 6).

Which country has the highest inflation rate? ›

Top 10 Countries with the Highest Inflation Rates (Trading Economics Jan 2022) With an inflation rate that has soared above one million percent in recent years, Venezuela has the highest inflation rate in the world.

How much is $100 in the US to Canada? ›

US Dollars to Canadian Dollars conversion rates
100 USD136.10 CAD
500 USD680.50 CAD
1,000 USD1,361.01 CAD
5,000 USD6,805.05 CAD
7 more rows

Is it a good time to buy Canadian dollars? ›

There is no best time to buy Canadian Dollar. Currency markets are incredibly complex and therefore unpredictable. GBP / CAD rates change constantly. The best time you can buy Canadian Dollar is when it is convenient and you are happy with the service and rate.

Is Canada better place to live than USA? ›

It has low crime rates, low poverty rates and world-class, free primary and secondary education. It has world-class universities. It has clean air and wide-open space. Canadians, on average, live longer than their U.S. counterparts.

When was the last time the Canadian dollar was higher than the US dollar? ›

It topped out at $1.0614 (US) on August 20, 1957. Until 2007 this was considered the modern-day peak for the Canadian dollar versus the US currency. The Canadian dollar was at $2.78 (US) in 1864 during the US Civil War, but in those days it was pegged to the gold standard, a practice the US had already abandoned.

Where is the best place to convert Canadian dollars to US dollars? ›

Exchange at a bank or credit union before your trip: Heading to your bank before your trip is often the most cost-effective way to exchange currency. Since you have an existing relationship with them, your bank is likely to give you the best exchange rates and charge the lowest fees.

Is Canadian dollar Expected to Rise? ›

Highlights and Key Points: USD CAD Forecast 2024–2029

Today, 09.07. 2024, the USDCAD exchange rate is 1.36372 CAD per 1 USD. Many analysts project that the USDCAD's bullish rally, which started in December 2023, will continue in 2024. Most experts expect the asset price to remain between 1.4200 and 1.4420.

What is $1 US worth in Canada today? ›

1 USD = 1.363115 CAD Jul 10, 2024 00:03 UTC

Check the currency rates against all the world currencies here. The currency converter below is easy to use and the currency rates are updated frequently.

When should I exchange USD to CAD? ›

The best bang for your buck is to evenly average out your exchanges over the last 5 business days of the month, with savings of $8,137.92 annually. Don't follow the same footsteps as your CAD to USD exchanges, because if you exchange all your funds on the 1st business day of the month you have chosen the worst option.

Why is the Canadian dollar falling in value? ›

Further, a weaker economy compared to the U.S. in the form of negative GDP growth per capita makes Canada less attractive to foreign investors, weighing on the loonie. Tardif said he could see the loonie “easily” falling to 50 cents US over time.

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