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Forex News

News source: FXStreet
Jan 14, 12:38 HKT
India Gold price today: Gold rises, according to FXStreet data

Gold prices rose in India on Wednesday, according to data compiled by FXStreet.

The price for Gold stood at 13,453.75 Indian Rupees (INR) per gram, up compared with the INR 13,327.55 it cost on Tuesday.

The price for Gold increased to INR 156,922.70 per tola from INR 155,449.90 per tola a day earlier.

Unit measure

Gold Price in INR

1 Gram

13,453.75

10 Grams

134,537.90

Tola

156,922.70

Troy Ounce

418,458.60

FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

(An automation tool was used in creating this post.)

Jan 14, 12:32 HKT
Gold rises above $4,600 as Fed rate cut bets, safe-haven demand grow
  • Gold rebounds toward the record high of $4,634.64 reached on Tuesday.
  • The non-interest-bearing Gold attracts buyers as softer US inflation fuels growing bets on Fed rate cuts.
  • The XAU/USD gains ground as geopolitical risks favor safe-haven demand.

Gold (XAU/USD) rebounds toward the record high of $4,634.64 reached in the previous session, trading around $4,620.00 per troy ounce on Wednesday. Precious metals, including Gold, attract buyers amid growing bets on Federal Reserve (Fed) rate cuts following the softer inflation in the United States (US).

US inflation data for December signaled easing underlying US inflation, strengthening views that price pressures are gradually cooling. Rate futures showed investors divided between expectations of two or three Fed rate cuts this year, well above policymakers’ median projection of one.

Gold prices found support as safe-haven demand strengthened amid renewed concerns over the Fed’s independence after US prosecutors opened a criminal probe linked to Chair Powell’s June testimony. Geopolitical risks also remained elevated, with markets closely watching the possibility of US involvement in Iran’s political unrest following repeated warnings of potential military action.

Daily Digest Market Movers: Gold remains stronger as US Dollar weakens

  • The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is edging lower after registering modest gains in the previous session. The DXY is trading around 99.10 at the time of writing, supporting dollar-denominated Gold by boosting demand from foreign-currency buyers.
  • US Core Consumer Price Index (CPI), excluding food and energy, rose 0.2% in December, below market expectations, while annual core inflation held at 2.6%, matching a four-year low. The data provided a clearer sign of easing inflation after earlier releases were skewed by shutdown effects. Meanwhile, CPI increased by 0.3% month-over-month in December 2025, matching market expectations and repeating the rise seen in September. The annual inflation remains at 2.7% increase as expected.
  • President Trump said on Monday that he would impose 25% tariffs on goods from any country doing business with Iran, stepping up pressure on Tehran amid widespread domestic protests. He added that the measure would take effect immediately, without providing further details. Trump warned on Sunday that action may be required before any meeting, even as he said Iran’s leadership had reached out seeking “to negotiate” after his military threats.
  • US federal prosecutors threatened to indict Fed Chair Jerome Powell over his comments to Congress regarding a building renovation project, raising questions about the central bank’s independence. The Trump administration has been pressuring the Fed to cut interest rates, with Powell calling the threat a “pretext” to influence policy.
  • US Nonfarm Payrolls (NFP) rose by 50,000 in December, falling short of November's 56,000 (revised from 64,000) and came in weaker than the market expectation of 60,000. However, the Unemployment Rate ticked lower to 4.4% in December from 4.6% in November, while the Average Hourly Earnings climbed to 3.8% YoY in December from 3.6% in the previous reading.
  • Richmond Fed President Tom Barkin said the decline in the unemployment rate was welcome and described job growth as modest but stable. Barkin added that it is difficult to find firms outside healthcare or AI that are hiring and said it remains unclear whether the labor market will tilt toward more hiring or more firing.

Gold technical setup warns potential bearish reversal as ascending wedge emerges

Gold (XAU/USD) is trading around $4,620 on Wednesday. The technical analysis of the daily chart suggests the XAU/USD pair remains within an emerging ascending wedge pattern, signaling weakening upside momentum and warning of a potential bearish reversal if the price breaks below the lower trendline with strong volume.

The nine-day Exponential Moving Average (EMA) stands above the 50-day EMA, confirming a well-defined bullish bias. Gold price holds above the faster average, and the 50-day slope continues to advance, underscoring medium-term upside pressure. The 14-day Relative Strength Index (RSI) at 71.39 is overbought, flagging stretched momentum even as the trend stays intact.

The immediate resistance appears at the record high of $4,634.64, reached on December 13, aligned with the upper boundary of the ascending wedge. A break above this confluence resistance zone would lead the XAU/USD pair to target $4,650 level. On the downside, the initial support lies at the nine-day EMA of $4,520.01, followed by the lower ascending wedge boundary around $4,470.00.

XAU/USD: Daily Chart

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

(The technical analysis of this story was written with the help of an AI tool.)

Jan 14, 11:40 HKT
Silver Price Forecast: XAG/USD extends rally to near $90.00 amid geopolitical woes
  • Silver price posts a fresh all-time high near $90.00 as the US threatens military action in Iran.
  • Chiefs from global central banks have criticized Washington’s attack Fed’s independence.
  • The US Dollar recovered strongly after the chiefs of global central banks supported Fed’s Powell.

Silver price (XAG/USD) extends its winning streak for the fourth trading day on Wednesday. The white metal rallies further to near $90.00 during the Asian trading session as demand for safe-haven assets remains firm amid geopolitical tensions.

Civil unrest in Iran as the general public demands political change due to surging inflation, falling Rial against the US Dollar (USD), and the government’s corruption has resulted in the killing of hundreds of protesters.

In response, United States (US) President Donald Trump has warned the military action in Tehran if the government continues killing protesters.

Meanwhile, higher concerns over Federal Reserve’s (Fed) independence, following criminal charges on Chairman Jerome Powell over mismanaging funds allocated for the renovation of Washington’s headquarters, which he called as “pretext”, a consequence of Fed setting interest rates based on its assessment of the public interest rather than the president's preferences”, have kept safe-haven assets on the front foot.

The event led to a sharp decline in the US Dollar, as market experts warned that an attack on the Fed’s autonomous status could weigh on US sovereign rating. However, the US Dollar has rebounded quickly after chiefs from global central banks have supported Fed’s Powell over his feud with President Trump.

“We stand in full solidarity with the Fed System and its Chair Jerome H. Powell,” heads of the European Central Bank (ECB), Bank of England (BoE), and nine other institutions said collectively on Tuesday.

Silver technical analysis

XAG/USD trades higher near $90.00 as of writing. The advance remains firm, with buyers maintaining control as momentum stretches into overbought territory.

The 14-day Relative Strength Index (RSI) at 74.77 (overbought) and rising from 72.52 confirms strengthening bullish pressure. While the bias points higher, stretched conditions could cap follow-through and prompt consolidation.

A moderation in momentum with RSI easing toward 70 would help reset the move and support a steadier grind. Conversely, a renewed acceleration in RSI toward the prior extreme near 85.90 would leave the rally vulnerable to a sharper pullback as momentum fatigue builds.

(The technical analysis of this story was written with the help of an AI tool.)

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

Jan 14, 11:19 HKT
WTI declines below $61.00 as US stockpile builds, Venezuelan exports resume
  • WTI price drifts lower to near $60.70 in Wednesday’s Asian session. 
  • Large builds in US crude inventories weigh on the WTI price. 
  • Trump promised Iranian protesters that help is on the way.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.70 during the Asian trading hours on Wednesday. The WTI price declines as Venezuela resumes exports and the American Petroleum Institute (API) shows a big build in US crude inventories. Traders brace for the Energy Information Administration (EIA) crude oil stockpiles report on Wednesday. 

Reuters reported on Tuesday that Venezuela has begun reversing oil production cuts made under a US oil embargo, as crude exports are also resuming. The source said two supertankers left Venezuelan seas on Monday, carrying around 1.8 million barrels of crude oil each, in what might be the first shipments of a 50-million-barrel supply agreement between Caracas and Washington to restart exports after the US capture of Venezuelan President Nicolas Maduro.

US crude inventories are experiencing a big build in US crude inventories. According to the US API weekly report, crude oil stockpiles in the US for the week ending January 9 rose by 5.27 million barrels, compared to a fall of 2.8 million barrels in the previous week. The market consensus estimated that stocks would decline by 2.0 million barrels.

Nonetheless, ongoing tensions in Iran, a major crude oil producer, could boost the WTI price. US President Donald Trump canceled all meetings with Iranian officials and promised protesters that help is on the way. The Islamic Republic's security forces have cracked down on large-scale protests, killing hundreds, according to reports. Trump has frequently threatened to intervene if the government kills protestors.

WTI Oil FAQs

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Jan 14, 08:52 HKT
China’s Trade Balance: Surplus widens in December as Exports surge

China's Trade Balance for December, in Chinese Yuan (CNY) terms, arrived at CNY808.80 billion, widening from the previous figure of CNY792.57 billion.

Exports climbed 5.2% YoY in December vs. 5.7% in November. The country’s imports rose 4.4% YoY in the same period vs. 1.7% recorded previously.

In US Dollar (USD) terms, China’s Trade Surplus expanded more than expected in December.

Trade Balance arrived at +114.10B versus +113.60B expected and +111.68B prior.

Exports (YoY): 6.6% vs. 3.0% expected and 5.9% last.

Imports (YoY): 5.7% vs. 0.9% expected and 1.9% previous.

Market reaction to China’s Trade Balance

AUD/USD extends gains around 0.6692 in an immediate reaction to the Chinese trade data. The pair is up 0.16% on the day, as of writing.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.00% -0.05% 0.06% 0.05% -0.15% -0.07% 0.06%
EUR -0.01% -0.05% 0.04% 0.03% -0.16% -0.08% 0.05%
GBP 0.05% 0.05% 0.13% 0.10% -0.10% -0.03% 0.11%
JPY -0.06% -0.04% -0.13% 0.00% -0.20% -0.12% 0.02%
CAD -0.05% -0.03% -0.10% -0.00% -0.20% -0.12% 0.01%
AUD 0.15% 0.16% 0.10% 0.20% 0.20% 0.08% 0.21%
NZD 0.07% 0.08% 0.03% 0.12% 0.12% -0.08% 0.13%
CHF -0.06% -0.05% -0.11% -0.02% -0.01% -0.21% -0.13%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).


This section was published on Wednesday at 00:52 GMT as a preview of China's Trade Balance data.

China’s Trade Balance Overview

The General Administration of Customs will publish its data for December on Wednesday at 03.00 GMT. Trade balance is expected to widen to $113.60B in December, compared to $111.68B in the previous reading. Exports are expected to rise by 3.0% YoY in December, while Imports are projected to increase by 0.9% YoY during the same period.

As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market.

How could the China’s Trade Balance affect AUD/USD?

AUD/USD trades on a positive note on the day in the lead up to China’s Trade Balance data. The pair edges lower as the US Dollar (USD) strengthens following data showing that Consumer Price Index (CPI) inflation data were largely as economists expected last month.

If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at the January 12 high of 0.6722. The next resistance level emerges at the January 6 high of 0.6742, en route to the January 7 high of 0.6766.

To the downside, the January 9 low of 0.6663 will offer some comfort to buyers. Extended losses could see a drop to the December 4 low of 2025 at 0.6614, followed by the 100-day EMA of 0.6587.

Australian Dollar FAQs

One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.

The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.

China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.

Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.

The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

Jan 14, 10:55 HKT
USD/CAD remains stronger near 1.3900 due to cautious Fed outlook
  • USD/CAD rises as the US Dollar strengthens on expectations that the Fed will hold policy steady this month.
  • US CPI rose 0.3% MoM in December 2025, matching expectations, while annual inflation held at 2.7%.
  • The Canadian Dollar may gain as WTI rises after Trump halted talks with Iran amid ongoing protests.

USD/CAD remains stronger for the second successive session, trading around 1.3900 during the Asian hours on Wednesday. The pair advances as the US Dollar strengthens after US Consumer Price Index (CPI) broadly met expectations, reinforcing views that the Federal Reserve (Fed) will likely hold policy steady this month, even as underlying price pressures showed signs of easing.

US Consumer Price Index increased by 0.3% month-over-month in December 2025, matching market expectations and repeating the rise seen in September. The annual inflation remains at 2.7% increase as expected. Meanwhile, Core CPI, excluding food and energy, rose 0.2% in December, below market expectations, while annual core inflation held at 2.6%, matching a four-year low.

The data provided a clearer sign of easing inflation after earlier releases were skewed by shutdown effects. However, last Friday’s strong Nonfarm Payrolls report, a dip in the Unemployment Rate, and a solid four-week average ADP Employment Change point to a resilient labor market.

The upside of the USD/CAD pair could be restrained as the commodity-linked Canadian Dollar (CAD) may receive support from higher Oil prices. West Texas Intermediate (WTI) Oil price hovers near two-month highs, trading around $60.70 per barrel at the time of writing.

Crude Oil prices advanced after US President Donald Trump halted talks with Iranian officials until protests ease, while voicing support for demonstrators. Ongoing unrest in Iran, coupled with the risk of US involvement, threatens the country’s roughly 3.3 million bpd oil output. Trump also warned that nations continuing business with Iran would face a new 25% tariff, intensifying concerns over potential supply disruptions.

Canadian Dollar FAQs

The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.

The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.

The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.

While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.

Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

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