The Canadian Dollar (CAD) is weakening due to changing interest rates between the U.S. and Canada. Even though the market feels positive today, it hasn’t helped the CAD. Bank of Canada Governor Macklem will speak about the Canadian economy. He won’t use prepared notes or answer questions. He’s expected to highlight slow growth and trade issues, mentioning that monetary policy can’t fully address the impact of tariffs.

Technical Indicators Against The CAD

We might see continued caution around the CAD, especially with the upcoming Federal budget announcement. Recent technical indicators are not favoring the CAD, worsened by a rally in the U.S. dollar (USD) after it hit a low mid-week. This has led to positive signals on several charts. The USD has gained strength from these signals, moving into the low 1.40s. This trend supports a positive outlook for the USD, which may push against resistance at 1.4080 and potentially rise to the 1.4150/60 area. The support level stands at 1.3975/00. The FXStreet Insights Team provides market observations from experts, combining insights from analysts and commercial notes.

Pressure On The Canadian Dollar

As of November 3rd, 2025, the Canadian Dollar is under pressure. This is mostly due to the widening gap between U.S. and Canadian interest rates. The latest Canadian jobs report for October was weaker than expected, showing a gain of only 15,000 jobs instead of the anticipated 25,000. Even in a stable market, the CAD is struggling to find support. We’re looking forward to hearing from Bank of Canada Governor Macklem later today, but we don’t expect anything new. His comments will likely reflect last week’s policy statement, stating that the high interest rates since the 2022-2023 cycle are still impacting economic growth. The Bank seems to think it can’t do much to boost growth right now. From a technical viewpoint, the indicators have turned against the CAD in the past week. The strong rebound of the U.S. dollar from last week’s lows has created positive trends across various timeframes. This suggests that the U.S. dollar has more potential to rise. The recent movement in USD/CAD above the 1.3720 level strengthens the bullish outlook for the U.S. dollar, putting the 1.3800 resistance at risk in the upcoming weeks. We think these signals indicate a possible rise towards the 1.3850 area. For now, the initial support for the pair is around the 1.3700 mark. Create your live VT Markets account and start trading now.

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