Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3900-1.4150
Euro 1.6250-1.6500
Sterling 1.8370-1.8620
The CAD/USD is opening at 1.4027 ( 0.7129 )
USD/CAD remains trading back and forth within the last few days’ trading range. Downside attempts held above the 1.4000 level and bulls capped below 1.4050.
Most currency pairs are trading within recent ranges, with the US Dollar slightly favoured by the cautious market mood, as investors bid their time ahead of the release of a slew of delayed US data, which might shed some more light on the US economic outlook and the Federal Reserve’s next monetary policy decisions.
The focus today is on the Canadian Consumer Prices Index report. Consumer inflation is expected to have ticked up to 0.2% in October, from 0.1% in September, although the yearly rate is seen slowing down to 2.1% from the previous month’s 2.4% reading.
Headlines
· After weeks of blackout, investors will finally get long-delayed readings on the strength of the US economy as government agencies resume publishing key indicators, including employment data. These releases should offer clearer guidance on the Federal Reserve’s policy path, even as enthusiasm for AI-linked equities continues to support broader market sentiment.
· Alongside the data, Nvidia’s earnings on Wednesday will draw intense scrutiny. While another beat is widely expected, investors are increasingly uneasy about sky-high AI valuations. The company will also face questions about recent stake reductions from major holders, adding to concerns that “circular” capital flows within the AI ecosystem may be inflating a bubble.
· Japan's GDP shrank 0.4% in Q3 2025, and 1.8% on an annualised basis, reversing a 0.6% increase in Q2 but slightly better than the expected 0.6% decline. This first drop since Q1 2024 was due to weak private residential investment and exports exerting a drag on overall output
· According to Nikkei, the Japanese government is reportedly contemplating a stimulus package totaling approximately JPY 17 trillion, with a supplementary budget expected to be around JPY 14 trillion.
· The Swiss government finalized a 15% tariff deal with the Trump administration, ending a dispute since August over increased tariffs on Swiss exports.
· Trump stated no further tariff rollbacks are needed. Top US officials held talks with Chinese counterparts on Friday, and he is discussing soybeans with China, reports Reuters.