Latest news with #AmoSahota
Mint
14-05-2025
- Business
- Mint
Canadian dollar weakens as interest rate spreads widen
Canadian dollar falls 0.3% against the greenback Trades in a range of 1.3902 to 1.3984 Price of U.S. oil settles 0.8% lower Canada-U.S. 2-year spread widens to 145 basis points TORONTO, May 14 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as oil prices fell and interest rate spreads moved further in favor of the American currency. The loonie was trading 0.3% lower at 1.3975 per U.S. dollar, or 71.56 U.S. cents, after trading in a range of 1.3902 to 1.3984. Investors have moved to price in a greater-than 50% chance of a Bank of Canada interest rate cut next month after downbeat domestic jobs data last Friday. "That creep up in interest rate expectations for the Bank of Canada is weighing on the loonie," said Amo Sahota, director at Klarity FX in San Francisco, adding that diverging prospects for BoC and Federal Reserve rate cuts have contributed to a wider gap between Canadian and U.S. short-term rates. The Canadian 2-year yield fell 2.6 basis points further below its U.S. equivalent to a gap of 145 basis points, which is the biggest gap since April 2. The price of oil, one of Canada's major exports, settled 0.8% lower at $63.15 a barrel as traders eyed a potential jump in U.S. crude inventories and after OPEC lowered its oil supply growth forecast for producers outside of OPEC . The value of Canadian building permits fell by 4.1% in March from February, with the largest decrease posted by Ontario. Canada's most populous province and industrial heartland is due to table its annual budget on Thursday. Canadian Finance Minister Francois-Philippe Champagne indicated the new Liberal government would not present an annual budget but instead will table an economic update later in the year. The Canadian 10-year yield rose 4.6 basis points to 3.256% as U.S. Treasury yields moved higher. (Reporting by Fergal Smith, Editing by Nick Zieminski)
Reuters
29-04-2025
- Business
- Reuters
Canadian dollar edges lower in calm reaction to minority government
Summary Canadian dollar falls 0.2% against the greenback Trades in a range of 1.3809 to 1.3871 Price of U.S. oil declines 2.4% Bond yields ease across the curve TORONTO, April 29 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday, but the move was modest as investors reacted calmly to a less conclusive outcome to the Canadian general election than had been expected and also shrugged off a drop in oil prices. The loonie was trading 0.2% lower at 1.3850 per U.S. dollar, or 72.20 U.S. cents, after trading in a range of 1.3809 to 1.3871. The Liberal Party retained power in parliamentary elections but was likely to fall short of the outright majority that polls had indicated and that Prime Minister Mark Carney had sought to help negotiate with the United States on trade tariffs. The market's reaction signals that "calmer heads are prevailing and maybe a quiet confidence that tariffs will get negotiated away and this is just a long walk to the renegotiation of the USMCA deal," said Amo Sahota, director at Klarity FX in San Francisco. The United States-Mexico-Canada Agreement - a free trade pact between the three nations - is up for review in 2026. U.S. President Donald Trump will soften the blow of his auto tariffs on Tuesday through an executive order that mixes credits with relief from other levies on parts and materials, after automakers pressed their case with the administration. Autos are among Canada's largest exports, as is oil. U.S. crude oil futures settled 2.6% lower at $60.42 a barrel as investors braced for OPEC+ to boost output and worried about the impact of tariffs on the global economy. Canadian government bond yields eased across the curve, tracking moves in U.S. Treasuries, as U.S. consumer confidence hit an almost five-year low. The 10-year was down 3.7 basis points at 3.129%.
Reuters
31-03-2025
- Business
- Reuters
Canadian dollar pares monthly gain on rising risk aversion
Summary Canadian dollar falls 0.5% against the greenback Touches its weakest since March 20 at 1.4395 For the month, the loonie advances 0.6% Bond yields ease across the curve TORONTO, March 31 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, giving back some monthly gains, as investors grew risk-averse ahead of U.S. trade tariffs expected to be unveiled this week. The loonie was trading 0.5% lower at 1.4385 per U.S. dollar, or 69.52 U.S. cents, after touching its weakest intraday level since March 20 at 1.4395. reciprocal tariffs he is set to announce on Wednesday will include all nations. "There has got to be a sense of risk aversion in the marketplace," said Amo Sahota, director at Klarity FX in San Francisco. "The Aussie and the Kiwi got hit pretty hard overnight in Asia marketplaces." The Australian dollar weakened 0.7%, while the New Zealand dollar was trading 0.8% lower. Australia and New Zealand, like Canada, are major producers of commodities so their currencies tend to be sensitive to shifts in investor sentiment. The price of oil, a major Canadian export, rose 3.2% to $71.58 a barrel after Trump threatened to impose more tariffs on Russia and to possibly attack Iran. For March, the Canadian dollar was up 0.6%, extending its recovery from a 22-year low last month at 1.4793. "The loonie overall had its initial moves very early on in the (trade war) cycle," Sahota said, adding that the focus has turned recently to how U.S. tariffs will impact other countries, such as those in Europe. Speculators have reduced their bearish bets on the Canadian dollar to the least since October, U.S. Commodity Futures Trading Commission data released on Friday showed. As of March 25, net short positions had decreased to 129,534 contracts from 136,582 in the prior week. Canadian government bond yields fell across the curve. The 10-year was down 1.7 basis points at 3.000%.
