Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3820-1.4070
Euro 1.6140-1.6390
Sterling 1.8420-1.8670
WTI Oil (opening level) $59.35
The CAD/USD is opening at 1.3942 ( 0.7173 )
USD/CAD trades cautiously and struggles to gain ground as the USD is under pressure, following hints from Trump that White House Economic Adviser Kevin Hassett could be the successor of Federal Reserve Chair Jerome Powell when his term ends in May 2026.
Trump stated that he has narrowed the list of potential Fed’s next chair candidates to one, which will be announced in early 2026, adding the name of White House adviser Hassett in his comments.
Investors await the US ADP Employment Change and the ISM Services Purchasing Managers’ Index data for November, which will be published today The impact of the US private sector employment data will be significant on expectations towards the Federal Reserve’s monetary policy outlook, given that a majority of officials, including Jerome Powell, have warned of downside labor market risks.
CAD will be influenced by the labor market data for November, which will be released on Friday. The Canadian Unemployment Rate is expected to come in higher at 7% from 6.9% in October. Meanwhile, the overall labor force is expected to have remained flat.
Headlines
· President Donald Trump said he plans to announce his pick to lead the Federal Reserve in early 2026 after considering around 10 candidates, hinted at National Economic Council Director Kevin Hassett as a possibility, and noted the nominee would require Senate confirmation.
· Fed Governor Michelle Bowman will set new bank and stablecoin rules, work with agencies on Genius Act capital and diversification requirements for stablecoin issuers, finalise Basel III Endgame, and refine the big‑bank surcharge to support market liquidity and affordable home ownership.
· The kremlin said vladimir putin held “very useful” talks with US envoys Steve Witkoff and Jared Kushner, but no Ukraine deal was reached; aide Yuri Ushakov called the talks constructive, noted no territorial compromise, and said any putin–Trump meeting hinges on progress as both sides intend to keep working.
· The US Economic Optimism Index climbed 9.1% to 47.9 in December, recovering from a 17-month low post-shutdown resolution but still below neutral. Six-Month Outlook rose 11%, Personal Financial Outlook increased 6.7%, and confidence in federal policies improved by 10.5%.
Key Points
· Equities: Wall Street rebounded on AI and industrial strength, Europe gained with banks and Bayer leading, while Hong Kong inched higher on consumers
· Volatility: VIX drifts toward mid-teens, SPX options price ~±0.9% weekly move, data busy day
· Digital assets: Bitcoin back near USD 93k; IBIT/ETHA rebound; altcoins firmer ahead of Ethereum’s Fusaka upgrade
· Fixed Income: New highs for Japan’s long JGB’s. US Treasuries steady.
· Currencies: US dollar weakens, EURUSD near key resistance.
· Commodities: Silver’s choppy breakout extends; gold waits for a signal