Archive · 12 Aug 2025
Canadian Dollar Recovers After U.S. Inflation Data
The Canadian dollar, often called the loonie, went up in value against the U.S. dollar after new information about how much things cost in the U.S. came out.
It had previously dropped to its lowest point in a week.
This happened because the U.S. data didn't make investors think the Federal Reserve would change interest rates in September.
The loonie gained 0.2% and is trading at 1.3755 per U.S. dollar.
The price of oil, which is important for Canada, also went down a bit.
The market is also waiting for news from the Bank of Canada about interest rates.
The Canadian dollar rebounded from a one-week low against the U.S. dollar.
The loonie gained 0.2% against the greenback.
It touched its weakest level since August 5 at 1.3806.
The price of oil decreased by 1%.
Bond yields rose across a steeper curve.
- Who
- The Canadian dollar and the U.S. dollar.
- What
- The Canadian dollar recovered against the U.S. dollar.
- When
- August 12
- Where
- Toronto
- Why
- Due to U.S. inflation data and expectations for the Federal Reserve's interest rate decisions.
Positive Factors
Negative Factors
Market Reaction
Positive Factors
U.S. inflation data did not surprise to the upside.
Negative Factors
China announced preliminary anti-dumping duties on Canadian canola imports.
- Loonie gain
- 0.2%
- Weakest level
- 1.3806
- Oil price decrease
- 1%
- Bank of Canada interest rate
- 2.75%
- Chance of rate cut by Oct
- 50%