USD/CAD holds gains near 1.4450 ahead of US CPI data, BoC interest rate decision
12.03.2025, 03:53

USD/CAD holds gains near 1.4450 ahead of US CPI data, BoC interest rate decision

  • USD/CAD gains ground as traders adopt caution ahead of the US CPI data.
  • The Bank of Canada is widely anticipated to deliver a 25 basis point rate cut on Wednesday.
  • The US Dollar faced challenges amid mounting concerns over a potential US economic slowdown.

USD/CAD maintains its gains after a previous session of losses, trading around 1.4440 during Asian hours on Wednesday. The pair's upside is supported by a stronger US Dollar (USD), driven by market caution ahead of the US Consumer Price Index (CPI) release and the Bank of Canada (BoC) interest rate decision later in the North American session.

According to LSEG data, financial markets estimate an 80% probability of a quarter-point rate cut by the Bank of Canada (BoC) in March, which would lower the policy rate from 3.0% to 2.75%. Investors also anticipate at least two additional cuts by the end of 2025.

The USD/CAD pair faced resistance as the Canadian Dollar (CAD) found support from easing trade war concerns. Ontario’s decision to suspend a planned 25% surcharge on electricity exports to the US, along with President Trump’s reconsideration of doubling tariffs on Canadian steel and aluminum, helped reduce cost pressures on Canadian exporters.

Meanwhile, Canada’s Energy Minister, Jonathan Wilkinson, warned on Tuesday that the country could implement non-tariff measures, including potential restrictions on Oil exports to the US, if trade tensions escalate further.

The US Dollar faced challenges amid growing concerns about a potential economic slowdown in the US. President Trump described the economy as being in a "transition period," a statement investors viewed as an early indication of possible turbulence ahead.

Canadian Dollar PRICE Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.20% 0.21% 0.19% 0.09% 0.21% 0.26% 0.11%
EUR -0.20%   0.00% -0.03% -0.10% 0.00% 0.06% -0.09%
GBP -0.21% -0.00%   -0.02% -0.11% 0.00% 0.05% -0.09%
JPY -0.19% 0.03% 0.02%   -0.09% 0.03% 0.06% -0.06%
CAD -0.09% 0.10% 0.11% 0.09%   0.12% 0.16% 0.04%
AUD -0.21% -0.01% -0.01% -0.03% -0.12%   0.05% -0.09%
NZD -0.26% -0.06% -0.05% -0.06% -0.16% -0.05%   -0.14%
CHF -0.11% 0.09% 0.09% 0.06% -0.04% 0.09% 0.14%  

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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