Canadian dollar hits 2-month high as U.S. bond yields fall
TORONTO, Feb 13 (Reuters) - The Canadian dollar strengthened to a two-month high against its U.S. counterpart on Thursday as U.S. bond yields declined and a key level of support for the American currency gave way.
The loonie was trading 0.5% higher at 1.4235 per U.S. dollar, or 70.25 U.S. cents, after touching its strongest intraday level since December 13 at 1.4211.
"Today's move lower in U.S. yields has weakened the USD across the board, thereby allowing CAD to post gains," said George Davis, chief technical strategist at RBC Capital Markets.
"Prices broke below strong support at 1.4265 which has contained selloffs in USD-CAD for the past week or so, with the break lower triggering some stops on long positions."
U.S. Treasury yields fell and the greenback posted losses against a basket of major currencies after components of the U.S. producer price report for January indicated that core PCE inflation, the Federal Reserve's preferred inflation measure, is likely to be lower than previously thought when it is released later this month.
Adding to support for the loonie, investors have dialed back expectations for a March interest rate cut from the Bank of Canada.
The swaps market is pricing in a 44% chance, down from 85% before last week's move by U.S. President Donald Trump to delay a 25% tariff on goods from Mexico and Canada for a month.
Trump said he plans to unveil reciprocal tariffs on Thursday afternoon but gave no details about his latest tariff plan, which could take aim at every country that charges duties on U.S. imports.
Canadian government bond yields fell across a flatter curve, tracking the moves in U.S. Treasuries.
The 10-year was down 7.4 basis points at 3.105%, after earlier touching its highest level since January 29 at 3.198%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
22 minutes ago
- Reuters
Morning Bid: No relief from US-China trade truce
A look at the day ahead in European and global markets from Johann M Cherian European investors are set to wake up to a souring mood as rapidly rising tensions in the Middle East and yet another tariff salvo from U.S. President Donald Trump triggered a new wave of dollar-selling and risk-off moves. The much-hyped U.S.-China talks culminated in a fragile truce that may have put a lid on simmering trade tensions between the world's top two economies for now but the lack of details has left investors unnerved. For starters, China President Xi Jinping is yet to give his approval on the 'deal'. And details on how the new tariffs will be implemented are yet to be ironed out and U.S. export restrictions on high-end artificial intelligence chips are still in place. And with the July 8 deadline on worldwide tariffs fast approaching, Trump is back to his unilateral style of policymaking as he said he would send out letters in one to two weeks outlining terms of trade to dozens of other countries, which they could embrace or reject. Markets will be hoping for another TACO moment. While backward looking inflation reports are yet to reflect the price pressures, companies are starting to sound the alarm. Zara-owner Inditex ( opens new tab was the latest to issue a disappointing quarterly report and flag headwinds from trade uncertainty. And as if investors did not have enough to juggle with already, geopolitical tensions in the Middle East are flaring, adding to the risks of rising crude prices fuelling inflation pressures. Supply concerns out of the oil-rich region pushed Brent and West Texas Intermediate futures to two-month highs of nearly $70 a barrel each. In all of this, as my colleague Jamie McGeever points out, valuations in equities and stocks are beginning to appear stretched, compounding the risks to investors in the event of a market selloff. European futures were down 0.7%, while futures in the U.S. are pointing to a lower open on Thursday, but the benchmark indexes in the regions are just about 2% away from their respective record highs. Further, investors continue to question the dollar's safe-haven status. On Thursday, the euro hit a seven-week high and is up 11% this year, poised for its biggest yearly advance since 2017. The central bank bonanza next week could perhaps throw more light on the global economy's outlook. The U.S. Federal Reserve along with the Bank of Japan and the Bank of England are due to announce their policy decisions. Meanwhile, investors will look for a string of UK economic data including reports on gross domestic product and manufacturing output later in the day. Both are expected to reflect a decline in activity on a monthly basis, reigned in by the BoE's cautious approach to monetary policy easing. Key developments that could provide more direction to markets on Thursday: - In the UK: GDP, industrial output, manufacturing output and trade data - In the U.S.: Producer inflation data, initial weekly jobless claims report and an auction of 30-year bonds worth $22 billion - Policymakers expected to speak include ECB's Jose Luis Escriva, Reserve Bank of Australia's David Jacobs - UniCredit ( opens new tab CEO sees slim hopes of BPM ( opens new tab deal, says Commerzbank ( opens new tab too costly - Oracle (ORCL.N), opens new tab raises annual forecast on robust cloud services demand - Warner Bros' (WBD.O), opens new tab credit rating downgraded to junk by Fitch on split-up
Daily Mirror
an hour ago
- Daily Mirror
8 countries offering Brits cash, homes and baby bonuses to move there
The world is becoming more connected, and countries are offering incentives to new residents - from cash to free housing and even baby bonuses. Here are the best deals. Longing to swap your nine-to-five for the idyllic life sipping ouzo on a Greek isle, inhaling Switzerland's Alpine air, or working from home in a Spanish village soaked in sunshine? It may seem like a pipe dream, but some countries are so eager for new blood they're offering cash to tempt you to relocate. In this hyper-connected digital age, a select few destinations are dangling tantalising financial carrots to entice global citizens to their shores. Whether you're a globe-trotting freelancer, a clan contemplating a big move, or a scholar plotting out your days ahead, there's no better opportunity to take that leap. Here's a look at eight enticing nations ready to pay you to become a part of their future, , reports the Express. Settle in Ireland and bag yourself up to €84,000 For what aim? Simply to "increase the population", "diversify the islands' economies", and "build sustainable futures". Remote workers and digital nomads couldn't ask for a more appealing new base. A Swiss village dishing out over £26,000 per family But there's a catch: you're required to purchase property valued no less than 200,000 Swiss Francs and pledge to stay a decade. It's a stellar deal in a nation renowned for an unbeatable standard of living. Spain's calling - and they're willing to foot the bill As rural communities witness shrinking numbers, local authorities are desperate to draw in overseas talent to breathe new life into their regions. With its sun-kissed beaches, esteemed wines, and dynamic cultural scene, who could resist such an invite? Greece proposes €500 monthly if you choose their serene haven Newcomers to the island can anticipate a monthly stipend of €500 (£430) for their first three years, courtesy of the Greek Orthodox Church. Mayor Efstaratios Charcalakis expressed: "We need young families large enough to make Antikythera alive and full of children's voices." Japan is offering up to ¥4.8 million to encourage people to settle in rural areas. In 2023, there was a significant drop in birth rates with only 758,631 babies born - a 5.1% decrease from 2022, and a stark contrast to the baby boom of the 1970s. The USA is actively seeking new residents and even offers financial incentives to those willing to relocate. There are numerous online platforms designed to assist potential expats in finding their ideal American town, complete with enticing incentive packages. Canadian students have the opportunity to earn big. Students could receive up to CA$20,000 (£11,580) in tuition reimbursements, depending on the length of their degree. To be eligible, you must graduate from an approved Canadian institution and either reside in or plan to move to Saskatchewan. With a plethora of countries offering cash, perks and support, perhaps it's time to consider packing your bags and starting a fresh life abroad?
Reuters
2 hours ago
- Reuters
Rupee likely to be buoyed by Fed cut bets, softer US trade signals
MUMBAI, June 12 (Reuters) - The Indian rupee is expected to open marginally higher on Thursday, supported by a weaker dollar following further signs that U.S. President Donald Trump is taking a conciliatory approach on tariffs and on rising expectations of Federal Reserve rate cuts later this year. The 1-month non-deliverable forward indicated an open in the 85.42-85.44 range, versus 85.51 in the previous session. The dollar index fell 0.5% on Wednesday and extended losses in the Asia session on Thursday. The decline lifted regional currencies, with most Asian units rising between 0.1% and 0.4%. The dip in USD/INR at the open may "at best" extend to the 85.30–85.35 zone, a currency trader at a state-run bank said. A move below that zone would mark a significant victory for rupee bulls, he added. The trader's remarks come against the backdrop of relatively range-bound trading in the Indian currency over recent sessions. Expectations of cooing trade tensions and potential Fed rate cuts kept the dollar under pressure. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs are imposed. Further, Trump said that a deal to get the fragile truce in the U.S.-China trade war back on track is done. Meanwhile, data on Wednesday showed U.S. consumer prices rose less than expected in May, leading traders to ramp up bets of a rate cut at the Fed's September policy meeting. The inflation report "eased some fears around persistent inflation acceleration" and accordingly, additional Fed easing was priced in with about 5-6 basis points of incremental easing added to end-2025 and 2026, Morgan Stanley said in its daily commentary. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.54; onshore one-month forward premium at 9 paisa ** Dollar index down at 98.40 ** Brent crude futures down 0.6% at $69.4 per barrel ** Ten-year U.S. note yield at 4.4% ** As per NSDL data, foreign investors bought a net $359.6 million worth of Indian shares on June 10 ** NSDL data shows foreign investors bought a net $159.4 million worth of Indian bonds on June 10
