CAD Market Update
Updated 25 Jul 2026 • 23:45 GMT
The Canadian Dollar (CAD) has been influenced by softer than expected inflation data, which decreased hopes for further interest rate hikes by the Bank of Canada. June's Consumer Price Index (CPI) slowed to an annual rate of 2.8%, leading to a rise in the USD/CAD pair, moving closer to 1.4060. While there is some support from higher oil prices, continued U.S. Dollar strength amid geopolitical tensions has applied additional pressure on the loonie. According to commentary from Commerzbank, the downtrend in USD/CAD is expected to persist unless there is sustained weakness in the U.S. Dollar.
Key watchpoints:
- Monitor the Bank of Canada's policy signals following recent CPI data.
- Track U.S. Dollar movements, particularly in the context of geopolitical developments, impacting USD/CAD.
- Observe global oil prices as they provide baseline support for the Canadian Dollar.
The riyal is officially pegged to the IMF's special drawing rights (SDRs). In practice, it is fixed at 1 U.S. dollar = 3.75 riyals, which translates to approximately 1 riyal = 0.266667 dollar.