Canadian Dollar Update, November 5, 2026 – Canadian Dollar steady and directionless

Canadian Dollar steady and directionless

• Canadian budget unveiled after 4:00pm
• Oil prices are steady to low on hopes for a diplomatic settlement to the Iran war
• US dollar is steady to modestly higher in early NY trading

USDCAD open (6:00 pm): 1.3957, overnight range 1.3943-1.3983, close 1.3979, WTI $88.71, Gold $4,127.01.

The Canadian dollar drifted sideways as global markets kept chewing over what the US midterm results mean for them. There was little appetite to push the pair either way, and the overnight session passed without incident.

Ottawa tables its budget for the coming fiscal year today.

WTI has climbed to $88.86 from an Asian low of $86.66 on bets that the midterm results open an exit ramp from the Iran war.

Asian equity markets closed higher.  Hong Kong’s Hang Seng rocketed up 3.67%, Australia’s ASX 200 jumped 2.61% and Japan’s Topix added 1.16%.

As of 7:10 am, Germany’s DAX up 0.82% and both the UK FTSE 100 and France’s CAC 40 ahead by roughly 0.76%. S&P 500 futures are 0.20% firmer, the US 10-year Treasury yield is at 4.891%, the DXY stands at 101.57 and gold (XAUUSD) is trading at $4,130.17.

EURUSD has slid back toward the bottom of a 1.1220-1.1269 range, surrendering its early gains and leaving the euro flat on the day. Eurozone producer prices climbed 11.1% y/y in September, hotter than the 10.7% forecast, while the 2.5% monthly rise matched expectations.

GBPUSD is holding in a 1.3459-1.3501 band after the Bank of England raised rates a quarter point to 4.0%.. The vote was 8-1, and the lone holdout wanted a half-point hike.

The Canadian calendar is empty today. In the US, weekly jobless claims are forecast at 194,000, and a number anywhere near that will barely register.