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Reuters
4 hours ago
- Business
- Reuters
Canadian dollar heads for fourth straight monthly gain as GDP beats estimates
TORONTO, May 30 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, and was headed for a monthly gain, as stronger-than-expected Canadian economic growth bolstered expectations the Bank of Canada would continue to leave interest rates on hold at a policy decision next week. The loonie was trading 0.4% higher at 1.3750 per U.S. dollar, or 72.73 U.S. cents, after moving in a range of 1.3740 to 1.3829. For the month, the currency was on track to gain 0.3%. That would be its fourth straight monthly advance, the longest such stretch since May 2021. Canadian gross domestic product increased at an annualized rate of 2.2% in the first quarter, eclipsing the 1.7% rise that economists had expected, as U.S. companies rushed to stockpile Canadian goods before the implementation of tariffs. A separate report showed GDP rising 0.1% in March from February, while a preliminary estimate for April also showed a gain of 0.1%. "The odds favour a hold at next week's Bank of Canada meeting," Karl Schamotta, chief market strategist at Corpay, said in a note. It's possible "that the flow of credit into Canadian households unleashed by last year's rate-cutting cycle is translating into more spending power," Schamotta added. Investors see a roughly 75% chance the BoC leaves its benchmark interest rate unchanged at 2.75% on Wednesday. The central bank moved to the sidelines in April for the first time since its easing campaign began last June. The price of oil , one of Canada's major exports, was trading 1.2% lower at $60.20 a barrel as investors weighed prospects of a potentially larger OPEC+ output hike for July. The Canadian 10-year yield was little changed at 3.205% as U.S. Treasury yields declined following data that showed American inflation was in line with expectations last month.
Globe and Mail
a day ago
- Business
- Globe and Mail
The best fixed and variable mortgage rates for this week
Market expectations for an interest-rate cut by the Bank of Canada have been consistently dropping ahead of the central bank's rate decision next week, meaning that variable-rate mortgage holders may not get the lower rates they hoped for. Earlier in the month, markets had priced in a 60-per-cent chance of a 25-basis-point cut after a federal jobs report came in weaker than expected. (There are 100 basis points in a percentage point.) Today, the odds are just 75 per cent of a rate hold when the BoC announces its interest-rate decision on June 4, largely because of concerning inflation numbers that came out later in May. Making a strategic choice of whether to go with a variable or fixed rate can be challenging at the best of times, but the way market sentiment has changed in just a few weeks shows how fickle it really can be. Earlier in the year, there were solid expectations of three more 25-basis-point cuts by the end of 2025. Now economists say there could be just one or two cuts. Variable-rate mortgages are generally only one rate cut away from being cheaper than a five-year fixed mortgage. But variable rates come with risk, and a potential mortgage holder has to consider whether they have the capacity to handle unexpected rate increases, and whether they can have peace of mind with that level of uncertainty. Mortgage rates are sourced by For a comprehensive list of today's mortgage rates for each term/type, visit is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products. Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on May 29.
Reuters
2 days ago
- Business
- Reuters
Canadian dollar dips as greenback notches broad-based gains
TORONTO, May 28 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as recent U.S. economic data bolstered the appeal of the American currency and ahead of domestic GDP data that could guide expectations for the Bank of Canada policy decision. The loonie was trading 0.2% lower at 1.3830 per U.S. dollar, or 72.31 U.S. cents, extending its pullback from a seven-month high on Monday at 1.3684. "It's a U.S. dollar story - the U.S. dollar is outperforming across the board," said Rahim Madhavji, president at "The U.S. economy is potentially doing better than some had expected." Data on Tuesday showed that U.S. consumer confidence improved in May after deteriorating for five straight months amid a truce in the trade war between Washington and China. "All eyes are looking towards the GDP data on Friday in Canada, which will obviously be a key indicator for the Bank of Canada," Madhavji said. Canadian gross domestic product data, due on Friday, is expected to show that the economy grew at an annualized rate of 1.7% in the first quarter, down from 2.6% in the previous quarter. Investors expect the BoC to leave its benchmark interest rate on hold at 2.75% at a policy decision meeting next Wednesday after recent domestic data showed underlying inflation heating up in April. The central bank paused its easing campaign last month for the first time since it began cutting rates in June. The price of oil, one of Canada's major exports, settled 1.6% higher at $61.84 a barrel as OPEC+ agreed to leave its output policy unchanged and the U.S. barred Chevron CVX.N from exporting Venezuelan crude. The Canadian 10-year yield eased half a basis point to 3.252%, while it was trading 5.1 basis points further below the equivalent U.S. rate at a gap of nearly 123 basis points.
CBC
4 days ago
- Business
- CBC
Hide Search Search CBC Kids News SEARCH CBC Kids News Hot Topics Topics Settings MODE Hot Topics Light mode Polls Sports Celebrities Canada-U.S. news Kids React Social Media Animals Space KID POVS Gaming KN Explains Extreme Nature Search Light mode WATCH — What is inflation? Here's why things get more expensive Published 2025-05-27 06:00 Video by Maya Endale CBC Kids News Contributor Angelica Cooper Associate Producer Three main factors affect how much prices rise Every month, CBC Kids News takes a deep dive into a topic that's been making headlines. Click the video above or below for this month's KN Explains. Ever hear your grandpa brag about how cheap candy used to be when he was a kid? That's because prices increase over time. We measure that increase through something called the inflation rate, which tells us how much the cost of goods and services goes up. On May 20, Canadians got their monthly update on the inflation rate. The Bank of Canada announced that April's rate was 1.7 per cent. That means in April 2025, things cost 1.7 per cent more, on average, than they did in April 2024. This is within economists' target range for healthy inflation. But overall, inflation has gone up a lot in the past 10 years — especially with the COVID-19 pandemic shutting businesses and leading consumers to make fewer purchases. In June 2022, inflation in Canada rose to a high of 8.1 per cent, the highest it's been in more than 30 years. When prices rise that much in a short period of time, it gets harder for a lot of people to keep up. Kids have told us that these days, it can be tough to afford essentials. There are three main factors that usually contribute to inflation. Watch the video to learn more about them. There's a sweet spot for inflation, say experts Chocolate isn't the only sweet thing we're talking about. Experts told us there's kind of a sweet spot when it comes to the inflation rate. You don't want it to be too low or too high. Ideally, we'll see a subtle and sustained increase every year. Right now, that sweet spot is between one and three per cent each year. Experts told us it's also important for Canadians' wages — how much we earn — to keep up with inflation. There's a lot to unwrap here, chocolate and inflation-wise. So let's get snacking and learning! Press play to see Maya use the cost of a chocolate bar to explain inflation.⬇️⬇️⬇️ Have Your Say This month's question is all about how you manage your money, spending or saving. Share your experiences and opinions in the form below. Loading… You can read the answer to last month's question here: What is something that you learned about MMIWG2S+ on Red Dress Day? Have more questions? Want to tell us how we're doing? Use the 'send us feedback' link below. ⬇️⬇️⬇️ TOP IMAGE CREDIT: Bank of Canada, with graphic design by Philip Street. VIDEO CREDITS: Host, Maya Endale; Senior Producer, Lisa Fender; Creative Producer, Marielle Torrefranca; Video Producer: Jamie McMahon; Associate Producer, Angelica Cooper; Editor, Emily Queripel; Graphic Designer: Philip Street; Copy Editor: Janet Davison. Send us feedback Report a typo or inaccuracy Print Story Share to Google Classroom About the Contributor Maya Endale CBC Kids News Contributor Maya Endale is a Grade 11 student from Edmonton, Alberta. She is an avid reader who's passionate about learning new skills and gaining knowledge. Was this story worth reading? More Stories You Might Like 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day CBC Kids News Real kids, real news Privacy Terms of Use Copyright Policy Other Policies Contact Us Accessibility About Us About Cookies Feedback Form © 2025 CBC Kids News BACK TO TOP close this modal You are now leaving the CBC Kids News Website. Cancel Submit Cancel Submit close this modal
WATCH — What is inflation? Here's why things get more expensive Published 2025-05-27 06:00 Video by Maya Endale CBC Kids News Contributor Angelica Cooper Associate Producer Three main factors affect how much prices rise Every month, CBC Kids News takes a deep dive into a topic that's been making headlines. Click the video above or below for this month's KN Explains. Ever hear your grandpa brag about how cheap candy used to be when he was a kid? That's because prices increase over time. We measure that increase through something called the inflation rate, which tells us how much the cost of goods and services goes up. On May 20, Canadians got their monthly update on the inflation rate. The Bank of Canada announced that April's rate was 1.7 per cent. That means in April 2025, things cost 1.7 per cent more, on average, than they did in April 2024. This is within economists' target range for healthy inflation. But overall, inflation has gone up a lot in the past 10 years — especially with the COVID-19 pandemic shutting businesses and leading consumers to make fewer purchases. In June 2022, inflation in Canada rose to a high of 8.1 per cent, the highest it's been in more than 30 years. When prices rise that much in a short period of time, it gets harder for a lot of people to keep up. Kids have told us that these days, it can be tough to afford essentials. There are three main factors that usually contribute to inflation. Watch the video to learn more about them. There's a sweet spot for inflation, say experts Chocolate isn't the only sweet thing we're talking about. Experts told us there's kind of a sweet spot when it comes to the inflation rate. You don't want it to be too low or too high. Ideally, we'll see a subtle and sustained increase every year. Right now, that sweet spot is between one and three per cent each year. Experts told us it's also important for Canadians' wages — how much we earn — to keep up with inflation. There's a lot to unwrap here, chocolate and inflation-wise. So let's get snacking and learning! Press play to see Maya use the cost of a chocolate bar to explain inflation.⬇️⬇️⬇️ Have Your Say This month's question is all about how you manage your money, spending or saving. Share your experiences and opinions in the form below. You can read the answer to last month's question here: What is something that you learned about MMIWG2S+ on Red Dress Day? Have more questions? Want to tell us how we're doing? Use the 'send us feedback' link below. ⬇️⬇️⬇️ TOP IMAGE CREDIT: Bank of Canada, with graphic design by Philip Street. VIDEO CREDITS: Host, Maya Endale; Senior Producer, Lisa Fender; Creative Producer, Marielle Torrefranca; Video Producer: Jamie McMahon; Associate Producer, Angelica Cooper; Editor, Emily Queripel; Graphic Designer: Philip Street; Copy Editor: Janet Davison. Send us feedback Report a typo or inaccuracy Print Story Share to Google Classroom About the Contributor Maya Endale CBC Kids News Contributor Maya Endale is a Grade 11 student from Edmonton, Alberta. She is an avid reader who's passionate about learning new skills and gaining knowledge. Was this story worth reading? More Stories You Might Like 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-05-15 16:58 Millions of dimes spill onto Texas highway after truck rolls over 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-04-22 16:02 I'm a teenager, and this election, I care about how expensive life is for youth 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day 2025-02-14 15:55 WATCH — The mysterious history of Valentine's Day Real kids, real news Privacy Terms of Use Copyright Policy Other Policies Contact Us Accessibility About Us About Cookies Feedback Form © 2025 CBC Kids News BACK TO TOP close this modal You are now leaving the CBC Kids News Website. Cancel Submit
Yahoo
7 days ago
- Business
- Yahoo
Money in the bank: FP Video looks at what the markets may bring
While Canadians have to wait a little longer for an economic statement from Mark Carney's newly elected government, FP Video takes a look at what might be next for the Bank of Canada and what the earnings season of Canada's big banks says about the economy. Jimmy Jean, chief economist at Desjardins Group, talks about what's ahead for the Canadian economy and the Bank of Canada. Greg Taylor, chief investment officer at PenderFund, talks about what to expect from the markets in the second half of 2025. At home and abroad: FP Video on continuing tariff turbulence Mr. Carney goes to Washington: FP Video unpacks the meeting and where tariffs go from here Sign in to access your portfolio
