Latest news with #ErikBregar
Zawya
26-05-2025
- Business
- Zawya
Canadian dollar hits 7-month high after upbeat retail sales data
TORONTO - The Canadian dollar strengthened to a seven-month high against its U.S. counterpart on Friday as the greenback posted broad-based declines and domestic retail sales data supported bets that the Bank of Canada would remain on the sidelines. The loonie was trading 1% higher at 1.3712 per U.S. dollar, or 72.93 U.S. cents, its strongest intraday level since October 10. It was the fifth straight day of gains for the currency, the longest daily winning streak since June. For the week, the currency was up 1.8%. Canadian retail sales grew by 0.8% in March from February, more than analysts had forecast, while preliminary data showed an April increase of 0.5%. The combination of strong domestic data and reduced demand for the American currency "put a flame under the Canadian dollar today," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. The move began "snowballing" after USD-CAD triggered stop-loss orders below the May 6 low at 1.3748. The U.S. dollar tumbled against a basket of major currencies and the price of oil, one of Canada's major exports, gained 0.6% to $61.58 a barrel. On Tuesday, hotter-than-expected Canadian core-inflation data spurred investors to bet that the BoC would leave its benchmark interest rate unchanged at 2.75% at a policy decision on June 4, after previously expecting the central bank to resume its easing campaign. The Canadian 10-year yield was down 1.5 basis points at 3.360%, tracking a decline in U.S. Treasury yields. U.S. President Donald Trump threatened to impose hefty tariffs on smartphone giant Apple and goods from the European Union, raising concerns about slowing economic growth.
Reuters
23-05-2025
- Business
- Reuters
Canadian dollar hits 7-month high after upbeat retail sales data
TORONTO, May 23 (Reuters) - The Canadian dollar strengthened to a seven-month high against its U.S. counterpart on Friday as the greenback posted broad-based declines and domestic retail sales data supported bets that the Bank of Canada would remain on the sidelines. The loonie was trading 1% higher at 1.3712 per U.S. dollar, or 72.93 U.S. cents, its strongest intraday level since October 10. It was the fifth straight day of gains for the currency, the longest daily winning streak since June. For the week, the currency was up 1.8%. Canadian retail sales grew by 0.8% in March from February, more than analysts had forecast, while preliminary data showed an April increase of 0.5%. The combination of strong domestic data and reduced demand for the American currency "put a flame under the Canadian dollar today," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. The move began "snowballing" after USD-CAD triggered stop-loss orders below the May 6 low at 1.3748. The U.S. dollar (.DXY), opens new tab tumbled against a basket of major currencies and the price of oil, one of Canada's major exports, gained 0.6% to $61.58 a barrel. On Tuesday, hotter-than-expected Canadian core-inflation data spurred investors to bet that the BoC would leave its benchmark interest rate unchanged at 2.75% at a policy decision on June 4, after previously expecting the central bank to resume its easing campaign. The Canadian 10-year yield was down 1.5 basis points at 3.360%, tracking a decline in U.S. Treasury yields. U.S. President Donald Trump threatened to impose hefty tariffs on smartphone giant Apple (AAPL.O), opens new tab and goods from the European Union, raising concerns about slowing economic growth.
Reuters
03-04-2025
- Business
- Reuters
Canadian dollar heads for biggest gain in two years after tariff reveal
Summary TORONTO, April 3 (Reuters) - The Canadian dollar rose to a near four-month high against the greenback on Thursday as Canada avoided fresh tariffs on its goods in a widening trade war that has led to investors ditching the American currency. The loonie was trading 1.3% higher at 1.4050 per U.S. dollar, or 71.17 U.S. cents, putting the currency on track for its biggest advance since January 2023. The currency touched its strongest intraday level since December 6 at 1.4028. Wall Street tumbled after U.S. President Donald Trump said he would impose a 10% baseline tariff on all imports to the United States and higher targeted duties on some of the country's biggest trading partners. Goods from Canada and Mexico that comply with the USMCA trade agreement between the three countries will largely remain exempt from tariffs, except for auto exports and steel and aluminum which fall under separate tariff policies. "We saw the initial reaction yesterday after the reciprocal tariff announcement - markets seemed to be celebrating the fact that there weren't any more tariffs on Canada," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "But overnight we've seen a collapse for the broader U.S. dollar." The U.S. dollar (.DXY), opens new tab posted sharp declines against a basket of major currencies as investors moved to price in four interest rate cuts this year from the Federal Reserve, up from three before the tariff announcement. In contrast, investors have reduced bets on the Bank of Canada continuing its interest rate cutting campaign this month. "I just don't think today is the day to be a hero and try to fade this," Bregar said. "This is a move where people are getting out and could continue maybe for another day or two." Canadian bond yields were mixed across a steeper curve. The 10-year yield was up half a basis point at 2.929%, while the gap between it and the U.S. equivalent narrowed by 13.5 basis points to about 113 basis points in favor of the U.S. note, the smallest since December 5.
Reuters
19-03-2025
- Business
- Reuters
Canadian dollar down marginally after Fed projects lower US growth
Summary Canadian dollar falls 0.1% against the greenback Trades in a range of 1.4296 to 1.4349 Canada's population growth slows in fourth quarter Bond yields ease across the curve TORONTO, March 19 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as the greenback posted broad-based gains, but the move for the loonie was limited as the Federal Reserve marked down its outlook for growth in the world's largest economy. The loonie was trading 0.1% lower at 1.4310 per U.S. dollar, or 69.88 U.S. cents, after moving in a range of 1.4296 to 1.4349. here. The Fed held interest rates steady, as expected, but U.S. central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and, eventually, a downturn in inflation. "If I had to guess what the bond market is focusing on right now, it's the lower growth outlook," said Erik Bregar, director of FX and precious metals risk management at Silver Gold Bull. "Even though the Fed is only showing two cuts this year, it seems like the market wants to price in three again." The U.S. dollar (.DXY), opens new tab was holding on to gains against a basket of major currencies after Turkey detained President Tayyip Erdogan's main political rival, sending the lira sharply lower. "Zooming out, I think the Turkish story is the main story for broad dollar strength," Bregar said. "It's been holding the euro back, the Canadian dollar and a bunch of other major currencies." Domestic data showed that Canada's population in the fourth quarter increased at the slowest pace since the COVID-19 pandemic as a government crackdown on immigration announced last year takes shape. Bank of Canada Governor Tiff Macklem is due to speak on Thursday about tariff-related uncertainty. Data on Tuesday showed Canadian inflation heating up more than expected in February. Canadian bond yields eased across the curve, tracking moves in U.S. Treasuries. The 10-year was down 2.7 basis points at 2.996%.
