Latest news with #BannockburnGlobalForexLLC
Business Recorder
7 hours ago
- Business
- Business Recorder
Surprise jobs gain helps Canadian dollar hold on to weekly move higher
TORONTO: The Canadian dollar edged lower against its U.S. counterpart on Friday but was holding on to a weekly gain, as stronger-than-expected domestic jobs data bolstered expectations the Bank of Canada would keep rates on hold next month. The loonie was trading nearly 0.1% lower at 1.3685 per U.S. dollar, or 73.07 U.S. cents, after moving in a range of 1.3661 to 1.3704. On Thursday, the currency touched an eight-month high at 1.3632, while it was on track for a weekly gain of 0.4%. Canada's economy added 8,800 jobs last month, compared to an expected decline of 12,500. The unemployment rate, however, climbed to 7%, its highest level in almost nine years, excluding the peak of the COVID-19 pandemic. 'A lot of part-time jobs were lost and they became full-time jobs. Net-net I think it's a good thing,' said Marc Chandler,chief market strategist at Bannockburn Global Forex LLC. 'It's also clear that the Bank of Canada is not going to be in a hurry to cut rates again. There still might be another rate cut coming but later this year.' Investors see a 73% chance the BoC keeps its benchmark interest rate on hold at 2.75% in July, up from 67% before the data. On Wednesday, the central bank refrained from cutting rates for a second straight meeting, citing the need to study the effects of U.S. trade policy. U.S. jobs data was also stronger than expected, which boosted the U.S. dollar against a basket of major currencies. The price of oil, one of Canada's major exports, rose on optimism about U.S.-China trade talks. U.S. crude oil futures traded nearly 2% higher at $64.62 a barrel. Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 7.2 basis points at 3.327%, trading at its highest level since May 26.
Mint
3 days ago
- Business
- Mint
Dollar pulls back from six-week low but tariff tensions persist
NEW YORK (Reuters) -The U.S. dollar rose on Tuesday, rebounding from a six-week low against the euro, even as investors remained concerned about potential economic damage from the trade war waged by President Donald Trump's administration. "We had a big selloff in the dollar and we have it bouncing back a bit today ... I don't think there has been a lot of fresh news to say the dollar has turned in any kind of meaningful way," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. "I'd say the bounce is still fairly constrained, fairly limited," he said. The dollar was up 0.9% against the yen at 144.00. The euro fell 0.6% to $1.1371, having briefly touched a six-week high of $1.1454. Data earlier showed inflation in the euro zone slowed below the European Central Bank's target of 2%, underpinning expectations for a rate cut later this week. For the year, the dollar is down about 9% against the euro. While global equity markets have broadly recovered from an early-April selloff in the wake of the on-again, off-again saga of Trump's tariff threats, the greenback remains pressured. U.S. duties on imported steel and aluminium are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations. Trump and Chinese President Xi Jinping were likely to have a call soon to iron out trade differences, Treasury Secretary Scott Bessent said on Sunday, although on Monday there was an angry rejection from China's Commerce Ministry of U.S. accusations that Beijing violated their trade agreement. "Trade developments remain crucial. Reports suggest China is gaining leverage over the U.S. through its control of chip supply chains and rare earths," ING strategist Francesco Pesole said. "Trump and Xi Jinping are set to speak this week, and past direct talks have sometimes eased tensions. That leaves room for a positive surprise that could help the dollar at some point this week," he said. On Tuesday, data showed U.S. job openings increased in April, but layoffs picked up in a move consistent with a slowing labor market amid a dimming economic outlook because of tariffs. Federal Reserve officials on Tuesday argued again for caution on monetary policy as Trump's trade war continues to inject substantial amounts of uncertainty and the risk of economic weakness into the outlook. Fiscal worries have also given rise to a broad "sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. Still, traders in the foreign exchange options market are positioned for the U.S. currency to weaken further. The British pound was 0.2% lower at $1.3519 on Tuesday, ahead of a raft of Bank of England speakers and an auction of long-dated government bonds that may offer a gauge of investor confidence in Britain's finances. Bitcoin, the world's largest cryptocurrency by market capitalisation, was 1.2% higher on the day at $106,219. (Reporting by Saqib Iqbal Ahmed; Additional reporting by Amanda Cooper and Rocky Swift; Editing by David Evans, William Maclean and Nia Williams)
Reuters
25-03-2025
- Business
- Reuters
Canadian dollar pares gains amid tariff and election uncertainty
TORONTO, March 25 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday but gains were kept in check by uncertainty around both a tightly contested Canadian general election and expected new U.S. trade tariffs on April 2. The loonie was trading 0.1% higher at 1.4305 per U.S. dollar, or 69.91 U.S. cents, after earlier touching its strongest intraday level since March 18 at 1.4272. "I'd say the market is thinking about two things. One, is the tariff announcement and two, is the Canadian election," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. It appears that Canadian Prime Minister Mark Carney is "shifting to a more pro-business stance and the market seems to like that and will be watching the polls closely," Chandler said. The ruling Liberal Party and the official opposition Conservatives were effectively tied in polls conducted just before the campaign started on Sunday. U.S. President Donald Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks. Canada is a major exporter of autos and other goods, such as oil, to the United States. The price of oil fell 0.6% to $68.72 a barrel, pulling back from an earlier three-week high. Canadian bond yields eased across the curve, tracking moves in U.S. Treasuries after weaker-than-expected American consumer confidence data. The 10-year was down 1.2 basis points at 3.052%.
Yahoo
04-02-2025
- Business
- Yahoo
Canadian dollar notches 13-day high as greenback slides
By Fergal Smith TORONTO (Reuters) - The Canadian dollar strengthened to a near two-week high against its U.S. counterpart on Tuesday, with the currency extending the gains it notched the day before when Canada avoided the immediate implementation of planned U.S. trade tariffs. The loonie was trading 0.6% higher at 1.4345 to the U.S. dollar, or 69.71 U.S. cents, after earlier touching its strongest level since Jan. 22 at 1.4306. "I think what we're seeing is a broader pullback for the U.S. dollar," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. The U.S. dollar fell against a basket of major currencies as President Donald Trump's tariff threats were interpreted more as a negotiating tactic rather than an end goal. On Monday, the loonie hit its weakest intraday level since April 2003 at 1.4793. That was before Trump suspended his threat of steep tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries. "The takeaway is that even if the tariffs aren't imposed this month that the disruption still to businesses and consumer sentiment may require the Bank of Canada to cut rates more than previously thought," Chandler said. Investors see a roughly 70% chance the Bank of Canada will ease further in March, after last month lowering the benchmark rate by 25 basis points to 3% to support the economy. The price of oil, one of Canada's major exports, was trading 0.9% lower at $72.52 a barrel due in part to ongoing tensions between the U.S. and China. Canadian bond yields were mixed across the curve. The 2-year was down 2.4 basis points at 2.623% but holding well above the near three-year it hit during Monday's session at 2.459%.
Reuters
04-02-2025
- Business
- Reuters
Canadian dollar notches 13-day high as greenback slides
Summary TORONTO, Feb 4 (Reuters) - The Canadian dollar strengthened to a near two-week high against its U.S. counterpart on Tuesday, with the currency extending the gains it notched the day before when Canada avoided the immediate implementation of planned U.S. trade tariffs. The loonie was trading 0.6% higher at 1.4345 to the U.S. dollar, or 69.71 U.S. cents, after earlier touching its strongest level since Jan. 22 at 1.4306. "I think what we're seeing is a broader pullback for the U.S. dollar," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. The U.S. dollar (.DXY), opens new tab fell against a basket of major currencies as President Donald Trump's tariff threats were interpreted more as a negotiating tactic rather than an end goal. On Monday, the loonie hit its weakest intraday level since April 2003 at 1.4793. That was before Trump suspended his threat of steep tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries. "The takeaway is that even if the tariffs aren't imposed this month that the disruption still to businesses and consumer sentiment may require the Bank of Canada to cut rates more than previously thought," Chandler said. Investors see a roughly 70% chance the Bank of Canada will ease further in March, after last month lowering the benchmark rate by 25 basis points to 3% to support the economy. The price of oil, one of Canada's major exports, was trading 0.9% lower at $72.52 a barrel due in part to ongoing tensions between the U.S. and China. Canadian bond yields were mixed across the curve. The 2-year was down 2.4 basis points at 2.623% but holding well above the near three-year it hit during Monday's session at 2.459%.
