Latest news with #KnightsbridgeFX.com
Mint
5 days ago
- Business
- Mint
Canadian dollar dips as greenback notches broad-based gains
Canadian dollar falls 0.2% against the greenback Extends pullback from a seven-month high Price of U.S. oil settles 1.6% higher Canada-U.S. 10-year spread widens 5.1 basis points 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. (Reporting by Fergal Smith; Editing by Aurora Ellis)
Reuters
14-04-2025
- Business
- Reuters
Canadian dollar edges off 5-month high ahead of BoC rate decision
Summary Canadian dollar falls 0.1% against the greenback Touches five-month high at 1.3829 Price of US oil decreases 0.6% Bond yields ease across the curve April 14 (Reuters) - The Canadian dollar edged back on Monday from an earlier five-month high against its U.S. counterpart as oil prices fell and investors turned their attention to a Bank of Canada interest rate decision this week. The loonie was trading 0.1% lower at 1.3875 per U.S. dollar, or 72.07 U.S. cents, after touching its strongest intraday level since November 6, at 1.3829. 'It had a good run over the last little bit. The rally ran out of steam,' said Rahim Madhavji, president of 'Everyone is looking towards the inflation report for Tuesday and then the Bank of Canada monetary policy decision on Wednesday.' Canada's consumer price report for March, due on Tuesday, is expected to show inflation matching the 2.6% annual rate it posted in February. Growing recession risks to Canada from the U.S.-led trade war will push the Bank of Canada to cut interest rates at least twice more this year, according to a Reuters poll, although a majority of the economists said policymakers will leave the benchmark rate unchanged at 2.75% on Wednesday. Investors see a 55% chance of a pause in rate cuts, swaps market data shows. The price of oil, one of Canada's major exports, was trading 0.6% lower at $61.15 a barrel on concerns that the trade war could weaken global economic growth despite exemptions for some electronics from U.S. tariffs. Speculators have reduced their bearish bets on the Canadian dollar to the lowest since October, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of April 8, net short positions had decreased to 119,241 contracts from 130,016 in the prior week. Canadian bond yields moved lower across the curve as U.S. Treasury yields pulled back after an epic surge last week. The 10-year was down 13.6 basis points at 3.131%.
