US Dollar Canadian Dollar Exchange Rate (USDCAD)

The biggest factor hurting the Canadian dollar value at present is the uncertainty in Europe. Greece’s banking sector has continued to unsettle thousands of investors, who are now demanding their money moves into so-called ‘safe’ havens. Those havens are generally thought to favour the US currency, as well as the Japanese Yen.

The lack of a resolution in the US Senate regarding changes to the banking regulations also gave a short term boost to the greenback, although how long that lasts will depend on how long it takes for the Democrats to garner enough support for their bill.

Some may expect that the Canadian Dollar may also be a relatively ‘safe’ investment for the markets. As steady as the economy has been north of the border, it is still lagging behind its larger rivals.

The US Fed is due to make a statement on interest rates later today, so we will see how the US Dollar Canadian Dollar Exchange Rate (USDCAD) is affected by this.