The USD/CAD pair is trading weakly near its lowest level in nearly three months at 1.3750 during the late Asian trading session on Monday. The Canadian pair has been under pressure, struggling to regain ground as the US dollar (USD) performs poorly, with investors evaluating US interest rate expectations for 2026.
At press time, the US Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is trading cautiously near an eight-week low of 98.13 hit on Thursday.
US dollar price last 7 days
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed in the last 7 days. The US dollar was the weakest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.74% | -0.24% | -0.11% | -0.47% | -0.12% | -0.14% | -0.98% | |
| euro | 0.74% | 0.54% | 0.69% | 0.32% | 0.68% | 0.65% | -0.20% | |
| GBP | 0.24% | -0.54% | 0.17% | -0.22% | 0.14% | 0.11% | -0.73% | |
| JPY | 0.11% | -0.69% | -0.17% | -0.36% | 0.00% | -0.02% | -0.85% | |
| Canadian | 0.47% | -0.32% | 0.22% | 0.36% | 0.36% | 0.34% | -0.53% | |
| Australian dollar | 0.12% | -0.68% | -0.14% | -0.00% | -0.36% | -0.03% | -0.87% | |
| New Zealand dollar | 0.14% | -0.65% | -0.11% | 0.02% | -0.34% | 0.03% | -0.84% | |
| Swiss franc | 0.98% | 0.20% | 0.73% | 0.85% | 0.53% | 0.87% | 0.84% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
According to the CME FedWatch tool, there is a 64.3% chance that the Fed will cut interest rates at least twice by the end of 2026. While the Fed plot showed that policymakers expect the federal funds rate to fall to 3.4% by 2026, suggesting another rate cut from current levels of 3.50%-3.75%.
The Fed’s dovish outlook is driven by weak labor market conditions in the United States, and continued support for further interest rate cuts by President Donald Trump. Last week, White House spokeswoman Carolyn Leavitt said the president was happy to see a 25 basis point rate cut, but believes more needs to be done.
For new signals about the current employment situation in the United States, investors are waiting for the November non-farm payrolls data, which will be released on Tuesday.
Meanwhile, the Canadian Dollar (CAD) is trading strongly against its counterparts from the past few trading days amid expectations that the Bank of Canada (BoC) has finished cutting interest rates in the near term. In a monetary policy statement last week, the Bank of Canada reiterated that “the current rate is at approximately the appropriate level to keep inflation close to 2%” as long as “the economy and inflation develop in line with expectations.”
In Monday’s session, the Canadian dollar will be affected by November CPI data, which will be published at 13:30 GMT. The headline CPI is expected to grow at a faster pace of 2.4% year-on-year versus 2.2% in October.
Economic indicator
Consumer Price Index (annual)
The Consumer Price Index (CPI), which is released by Statistics Canada on a monthly basis, represents changes in prices for Canadian consumers by comparing the cost of a fixed basket of goods and services. The annual reading compares prices in the reference month with the same month of the previous year. In general, a high reading is considered bullish for the Canadian Dollar (CAD), while a low reading is considered bearish.
Read more.
Next release:
Monday 15 December 2025 at 1:30
repetition:
monthly
consensus:
2.4%
former:
2.2%
source:
Statistics Canada
