Canadian Dollar Eases Past 1.4 USD

2025-11-19 15:41 By Felipe Alarcon 1 min. read

The Canadian dollar traded above 1.40 per USD, as the relief spike after Parliament approved the budget eased, but that one-off bid quickly faded because the deeper drivers for the loonie did not change.

October inflation cooled to 2.2% which weakens the case for a persistently tighter Bank of Canada and limits Canada’s carry advantage now that the policy rate sits at 2.25%.

Domestic activity also looks soft, with housing starts plunging about 17% in October, so there is little evidence of the growth pickup that would lift Canadian yields relative to the United States.

The commodity channel has been unreliable as oil swung around on inventory prints and profit taking, removing a steady external bid for the currency.

Elsewhere, shifts in Fed cut odds and episodes of firmer US rates have allowed the dollar to reclaim ground when yields move against Canada, so the relief-driven rally lacked the follow through needed to sustain a stronger CAD.



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