Canadian dollar (CAD) market outlook and exchange rates

CAD Market Update

08 Aug 2026 • 01:25 GMT

CAD/USD 0.7168

The Canadian dollar remains relatively steady against the US dollar, trading at around 0.7168, slightly above its recent three-month average. Over the past few weeks, the CAD has stayed within a narrow range between roughly 0.7026 and 0.7314, reflecting a period of stability.

Oil prices continue to play a role in CAD movements, with stronger energy markets providing some support to the loonie. Despite this, the Bank of Canada has kept interest rates unchanged at 2.25%, though markets remain cautious about future hikes, especially amid mixed economic signals and trade concerns.

Market watchers are closely monitoring global energy prices and any updates from the BoC, as these factors could influence the CAD’s direction in the coming months. The currency's recent stability suggests traders are waiting for clearer economic signals or geopolitical developments to drive larger moves.

Overall, the CAD is holding its ground, with limited volatility so far, but ongoing developments in oil markets and Canadian economic data releases will continue to be key drivers.