Latest news with #Canadian dollar
Reuters
2 days ago
- Business
- Reuters
Canadian dollar steadies ahead of domestic inflation data
TORONTO, Aug 18 (Reuters) - The Canadian dollar was barely changed against its U.S. counterpart on Monday as oil prices rose and investors awaited domestic inflation data that could guide expectations for the Bank of Canada policy outlook. The loonie was trading nearly unchanged at 1.3814 per U.S. dollar, or 72.39 U.S. cents, after moving in a range of 1.3784 to 1.3831. Canada's consumer price index report for July is due on Tuesday. Economists expect the annual rate of increase in consumer prices to ease to 1.8% from 1.9% in June, but measures of underlying inflation that are closely tracked by the BoC are forecast to remain well above the central bank's 2% target. "Tomorrow's Canadian inflation report should remain too hot for comfort," Karl Schamotta, chief market strategist at Corpay, said in a note. "The central bank's preferred trim and median core measures are likely to hold close to the 3% threshold for now as retaliatory tariffs and still-resilient consumer spending levels translate into upward pressure on prices." Investors see a 68% chance that the BoC would leave interest rates unchanged at its next policy decision on September 17. The central bank has been on hold since lowering the benchmark rate to 2.75% in March. The price of oil , one of Canada's major exports, was up 0.5% at $63.11 a barrel, while the U.S. dollar (.DXY), opens new tab notched gains against a basket of major currencies. Canadian housing starts unexpectedly rose in July, advancing 4% from the previous month, data from the national housing agency showed. Data on Friday from the U.S. Commodity Futures Trading Commission showed that speculators have raised their bearish bets on the Canadian dollar to the highest level since June. The Canadian 10-year yield was up 2.7 basis points at 3.489%, after earlier touching its highest level since July 30 at 3.506%.
Yahoo
13-08-2025
- Business
- Yahoo
Canadian dollar steadies as BoC minutes reveal split on rate outlook
By Fergal Smith TORONTO (Reuters) -The Canadian dollar was barely changed against its U.S. counterpart on Wednesday, as oil prices fell and minutes from the Bank of Canada's latest policy decision showed that policymakers were split on the need for additional interest rate cuts. The loonie was trading nearly unchanged at 1.3770 per U.S. dollar, or 72.62 U.S. cents, after moving in a range of 1.3752 to 1.3782. Deliberations of the Bank of Canada's Governing Council in July, when the benchmark rate was left unchanged at 2.75%, showed that the central bank was divided on how much monetary policy could aid growth under current economic conditions that are shaped by U.S. tariffs. "There's a split in the Governing Council, with some members believing that rates may not need to fall further," Benjamin Reitzes, Canadian rates & macro strategist at BMO Capital Markets, said in a note. "Other members highlighted that persistent slack and ongoing labour market softness could warrant further easing." Investors see a 33% chance that the BoC eases at the next policy decision on September 17. That's up from 17% at the start of the month, after expectations rose that the Federal Reserve would resume its easing campaign and the release of weaker-than-expected domestic jobs data. The price of oil settled 0.8% lower at $62.65 a barrel after U.S. crude supply unexpectedly rose. Oil is one of Canada's major exports. In a potential blow to Canada's economy, Air Canada is cancelling flights from Thursday. The country's largest carrier is winding down service ahead of a looming Saturday strike by its more than 10,000 flight attendants. Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 4.7 basis points at 3.388%. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
11-08-2025
- Business
- Yahoo
Canadian dollar hits a six-day low ahead of pivotal US inflation data
By Fergal Smith TORONTO (Reuters) -The Canadian dollar weakened to a six-day low against its U.S. counterpart on Monday, as the greenback notched broad-based gains ahead of a key U.S. inflation report this week and after speculators raised their bearish bets on the loonie to a two-month high. The loonie was trading 0.2% lower at 1.3784 per U.S. dollar, or 72.55 U.S. cents, after touching its weakest intraday level since last Tuesday at 1.3795. The U.S. dollar rose against a basket of major currencies, a day before the deadline for Washington and Beijing to strike a tariff deal and the release of U.S. consumer price index data that could help determine whether the Federal Reserve lowers borrowing costs next month. "CAD remains tethered to USD direction," Amo Sahota, director at Klarity FX in San Francisco, said in a note. Recent Canadian data has raised expectations for a Bank of Canada interest rate cut, but slow summer trading has limited the impact on the currency, Sahota said. Canada's economy shed 40,800 jobs in July, giving back some of the substantial gains seen in the prior month, data on Friday showed. Investors see a 36% chance the BoC cuts rates at its next policy decision on September 17, up from 17% at the start of the month. Also on Friday, data from the U.S. Commodity Futures Trading Commission showed that net short positions in the Canadian dollar have increased to 79,420 contracts, the highest since June, from 76,433 in the prior week. The price of oil clawed back some of last week's steep decline, rising 0.5% to $64.18 a barrel. Oil is one of Canada's major exports. Canadian bond yields edged lower across the curve. The 10-year was down nearly one basis point at 3.376%, after earlier touching its lowest level since July 4 at 3.353%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Canadian dollar hits two-month low as BoC offers dovish clues on rates
By Fergal Smith TORONTO (Reuters) -The Canadian dollar weakened to a two-month low against its U.S. counterpart on Wednesday as the greenback posted broad-based gains and the Bank of Canada opened the door to cutting interest rates further in the coming months. The loonie was trading 0.4% lower at 1.3822 per U.S. dollar, or 72.35 U.S. cents, after touching its weakest intraday level since May 30 at 1.3828. "It seems to be a reaction to the Bank of Canada's statement earlier today and also the associated MPR (Monetary Policy Report)," said Bipan Rai, head of ETF and structured solutions strategy at BMO Global Asset Management. "Amid the uncertainty and also how resilient the economy has been to tariff-related risks, if you peel that back it does look like there's a tinge of dovishness embedded within the bank's communications today that does potentially allude to the need for another cut or another couple of cuts in the one or two quarters to come." The Bank of Canada held its benchmark interest rate at 2.75%, as expected, for the third straight policy decision. It said the risk of a severe and escalating global trade war had diminished, but if a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for lower rates. The U.S. dollar advanced against a basket of major currencies as data showed the U.S. economy rebounding more than expected in the second quarter and after the Federal Reserve held interest rates steady. The price of oil, one of Canada's major exports, settled 1.1% higher at $70.00 a barrel, while Canadian bond yields edged higher across a steeper curve. The 10-year was up 1.8 basis points at 3.491%, while the gap between it and the U.S. 10-year widened by 1.6 basis points to 87.1 basis points in favor of the U.S. note. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
