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Reuters
12 hours ago
- Business
- Reuters
Canadian dollar notches biggest gain in one month as greenback slides
TORONTO, June 26 (Reuters) - The Canadian dollar strengthened to a nine-day high against its U.S. counterpart on Thursday as the greenback posted broad-based declines and ahead of domestic GDP data that could help guide expectations for additional easing from the Bank of Canada. The U.S. dollar (.DXY), opens new tab fell to a three-year low against a basket of major currencies after a report that U.S. President Donald Trump had toyed with the idea of selecting and announcing Federal Reserve Chair Jerome Powell's replacement by September or October undermined faith in the soundness of the country's monetary policy. Investors also weighed U.S. gross domestic product data that showed the economy shrinking at a downwardly revised annualized rate of 0.5% in the first quarter. "It's simply a USD move today on the softer U.S. GDP revision along with the Shadow Fed Chair story," said Amo Sahota, director at Klarity FX in San Francisco. "I think trend traders will want to see how Canadian GDP turns out tomorrow. If it's strong then it looks like we are heading to a fresh USD-CAD low for the year." The Canadian dollar was trading 0.7% higher at 1.3625 per U.S. dollar, or 73.39 U.S. cents, after touching its strongest intraday level since June 17 at 1.3619. It was the currency's biggest advance since May 23. Canada's GDP report for April, due on Friday, is expected to show no change in the level of activity from March. Preliminary data on Thursday showed that wholesale trade fell 0.4% on a monthly basis in May, adding to recent evidence of a slowdown in the Canadian economy. Investors see a nearly 40% chance of the Bank of Canada resuming its easing campaign at the next policy decision on July 30. The price of oil , one of Canada's major exports, settled 0.5% higher at $65.24 a barrel, while Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 3.8 basis points at 3.323%.
Yahoo
12 hours ago
- Business
- Yahoo
Canadian dollar notches biggest gain in one month as greenback slides
By Fergal Smith TORONTO (Reuters) -The Canadian dollar strengthened to a nine-day high against its U.S. counterpart on Thursday as the greenback posted broad-based declines and ahead of domestic GDP data that could help guide expectations for additional easing from the Bank of Canada. The U.S. dollar fell to a three-year low against a basket of major currencies after a report that U.S. President Donald Trump had toyed with the idea of selecting and announcing Federal Reserve Chair Jerome Powell's replacement by September or October undermined faith in the soundness of the country's monetary policy. Investors also weighed U.S. gross domestic product data that showed the economy shrinking at a downwardly revised annualized rate of 0.5% in the first quarter. "It's simply a USD move today on the softer U.S. GDP revision along with the Shadow Fed Chair story," said Amo Sahota, director at Klarity FX in San Francisco. "I think trend traders will want to see how Canadian GDP turns out tomorrow. If it's strong then it looks like we are heading to a fresh USD-CAD low for the year." The Canadian dollar was trading 0.7% higher at 1.3625 per U.S. dollar, or 73.39 U.S. cents, after touching its strongest intraday level since June 17 at 1.3619. It was the currency's biggest advance since May 23. Canada's GDP report for April, due on Friday, is expected to show no change in the level of activity from March. Preliminary data on Thursday showed that wholesale trade fell 0.4% on a monthly basis in May, adding to recent evidence of a slowdown in the Canadian economy. Investors see a nearly 40% chance of the Bank of Canada resuming its easing campaign at the next policy decision on July 30. The price of oil, one of Canada's major exports, settled 0.5% higher at $65.24 a barrel, while Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 3.8 basis points at 3.323%. 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
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%.
Reuters
05-03-2025
- Business
- Reuters
Canadian dollar gains as investors eye tariff negotiations
Summary Canadian dollar gains 0.3% against the greenback Trades in a range of 1.4341 to 1.4449 Downturn deepens in Canada's services economy Bond yields trade mixed across steeper curve TORONTO, March 5 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday, extending its rebound from a one-month low, as investors weighed prospects of Canada's receiving some relief from U.S. tariffs. The loonie was trading 0.3% higher at 1.4350 to the U.S. dollar, or 69.69 U.S. cents, after trading in a range of 1.4341 to 1.4449. On Tuesday, the currency touched its weakest intraday level since February 3, at 1.4543. U.S. President Donald Trump told Canadian Prime Minister Justin Trudeau that he had not done enough to curb fentanyl smuggling in a phone call that did not appear to convince Trump to lift the punishing 25% duties on all imports from Canada and Mexico. But later in the day, The White House said that Trump will exempt automakers from the tariffs for one month as long as they comply with terms of an existing free-trade agreement between the three North American countries. "The negotiation aspect is where we are now," said Amo Sahota, director at Klarity FX in San Francisco. "The market is trying to settle in and find out what the new normal is going to look like for the next few months." The downturn in Canada's services economy deepened in February as firms avoided committing to new business in anticipation of a trade war, S&P Global's Canada services PMI data showed. The U.S. dollar (.DXY), opens new tab fell against a basket of major currencies after Germany proposed a 500-billion-euro ($531 billion) infrastructure fund, boosting European growth prospects and the euro . The price of oil , one of Canada's major exports, fell 2.9% to $66.28 a barrel after U.S. crude oil stockpiles posted a larger-than-expected build. Canadian bond yields were mixed across a steeper curve. The 2-year yield eased 1.5 basis points to 2.549% and the 10-year was up 2.7 basis points at 2.967%.
