16 December 2022 | Other

Canadian dollar falls as ECB hawks spook investors

The Canadian dollar fell markedly against the stronger U.S. currency on Thursday. A flurry of interest rate hikes has affected sentiment and the Canadian real estate market keeps on weakening.

The Canadian dollar fell 0.9% to 1.3665 per U.S. dollar, approaching its weakest level since early November.

Eric Theoret, global macro strategist at Manulife Investment Management, said the market reaction to the hawkish ECB meeting was negative. This led to a general aversion to risk and a strengthening of the U.S. dollar.

The US dollar rose against a basket of major currencies. At the same time, the indices of the world stock markets and Canadian oil prices fell.

The ECB slowed the pace of interest rate hikes. However, the bank representatives added there will be another significant tightening soon. This statement was a response to a hawkish outlook by the Fed as the U.S. raised rates.

Canadian home sales fell 3.3% in November from the previous month. In addition, the average price declined 12% year-over-year. 

Company MarketCheese
Period: 01.08.2026 Expectation: 3000 pips
Invest in USDCAD after updating yearly highs
Yesterday at 10:51 AM 24
Period: 15.07.2026 Expectation: 210 pips
Sell natural gas on cooler US weather outlook
Yesterday at 10:33 AM 14
Period: 08.07.2026 Expectation: 1000 pips
EURUSD exhausts its recovery potential after recent rebound
Yesterday at 08:23 AM 19
Period: 08.07.2026 Expectation: 1500 pips
NVIDIA stocks poised to test fresh lows as investors unwind their positions
Yesterday at 05:48 AM 18
Period: 14.07.2026 Expectation: 5500 pips
Invest in Bitcoin up to $65,000
30 June 2026 33
Brent sell
Period: 07.07.2026 Expectation: 320 pips
Buying Brent crude on fading risk of global deficit
30 June 2026 32
Go to forecasts