CAD Market Update
23 Mar 2026 • 00:16 GMT
The Canadian dollar remains relatively steady against the US dollar at around 0.7294, close to its 3-month average. Despite oil prices climbing above $110 a barrel, the CAD slipped slightly yesterday, reflecting how recent retail sales data, which may show a contraction in February, are weighing on the currency.
Meanwhile, the US dollar has gained strength, driven by escalating geopolitical tensions with Iran and a move towards safe-haven assets. The US Dollar Index is nearing the 100 mark, indicating broad dollar demand. This risk aversion and US economic resilience have kept USD outperforming the CAD over recent sessions.
Other currency moves show the CAD is trading slightly above its 3-month average against the euro and the British pound, but below its average versus the Australian dollar. These movements suggest the CAD's performance continues to depend heavily on risk sentiment and commodity trends.
Looking ahead, traders are watching how geopolitical developments and global trade tensions could influence the currency landscape, along with any shifts in US monetary policy that might impact the US dollar and, by extension, the CAD.
📊 Quick forecast view
Near-term bias: ⚪ Range-bound
Expected range: 0.7280 – 0.7410
Dominant driver: 🌍 Global risk sentiment
3-month trend: 🟠 Range-bound, downside bias
