CAD Market Update
12 May 2026 • 00:29 GMT
The Canadian dollar remains near 14-day lows against the US dollar, trading around 0.7308. Despite limited reaction to recent oil price gains, the CAD has generally been stable in a narrow range. Market sentiment continues to be influenced by a softer USD and cautious expectations from the Bank of Canada, which is not anticipated to raise rates through 2026.
Looking ahead, the USD/CAD pair may experience choppy trading around current levels, with technical signals suggesting a potential move lower toward 1.34 by year-end. Oil prices are supporting the CAD's outlook positively, but markets remain cautious about possible shifts in US monetary policy and geopolitical developments.
Additionally, the CAD has weakened against other major currencies, hitting 90-day lows at around 1.0085 versus the AUD. Against the euro and GBP, the CAD also edged lower but remains in a narrow trading band. Overall, the CAD's recent moves reflect a delicate balance of oil market strength, US dollar trends, and cautious central bank outlooks.
📊 Quick forecast view
🔴 Mild downside
0.7050 – 0.7310
🌍 Global risk sentiment
⚪ Range-bound
