In November, Canada’s wholesale sales dropped by 1.8%, which was below the expected increase of 0.1%. This change is an important indicator of economic activity in the country. The USD/CAD exchange rate has risen, thanks to strong US economic data and a weaker Canadian dollar, influenced by falling oil prices. At the same time, the British Pound has fallen to its lowest point in four weeks, due to a stronger US dollar and recent data from the US.

Gold Prices and Cryptocurrency Trends

Gold prices are holding steady above $4,600 per troy ounce, despite a slight pullback, as the US dollar strengthens. Bitcoin and Ethereum have experienced small corrections but have remained strong overall, while Ethereum dipped slightly after a big surge past $3,400. Ripple is facing pressure as it expands in Europe, having recently received preliminary licensing approval from Luxembourg’s regulator. The cryptocurrency has seen declines for two straight days. Investors are diversifying their markets, looking to Asia for different returns instead of relying solely on US stocks. Many brokers are being evaluated based on their spreads, leverage, regulation, and trading platforms, providing various options for trading currencies, metals, and other financial instruments by 2026.

Canadian Economic Outlook

The unexpectedly low wholesale sales data from November 2025, which showed a 1.8% decline, is still affecting the Canadian dollar. This was a significant disappointment compared to the expected 0.1% increase and signals a cooling economy. It appears this is not a one-time event but the beginning of a pattern. Recent data reinforces concerns about Canada’s economic outlook. The latest inflation report shows a drop to 2.9%, nearing the Bank of Canada’s target range. This decrease in inflation gives the central bank more room to consider cutting interest rates to promote growth. Weaker crude oil prices, with WTI hovering around $72 a barrel, are also putting pressure on the commodity-linked Canadian dollar. In light of this, we expect the USD/CAD pair to rise further, currently testing the 1.3500 level. Traders might consider buying call options on USD/CAD to benefit from potential upward movement while minimizing downside risk. This strategy awaits a weakening Canadian dollar leading up to the next Bank of Canada meeting on January 24th. Implied volatility for Canadian dollar options is increasing, indicating the market anticipates larger price fluctuations. Selling out-of-the-money puts on USD/CAD could be a viable alternative strategy for those with a moderately bullish outlook, allowing them to collect premiums. It’s a way to take advantage of both the expected upward trend and elevated market uncertainty. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now