Latest news with #inflation data
Reuters
8 hours 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
6 days ago
- Business
- Yahoo
Soft US inflation boosts Asia markets
Japan's Nikkei hit a second record high in as many days Wednesday, as hopes of US interest rate cuts following soft inflation data cheered equity investors across Asia. The S&P 500 and Nasdaq finished at fresh highs Tuesday after US data showed a tamer-than-feared impact on prices from President Donald Trump's tariff blitz. That boosted hopes among some investors that the US Federal Reserve and its embattled chief Jerome Powell will cut interest rates next month. "Jerome 'Too Late' Powell must NOW lower the rate," Trump said on Truth Social, while also threatening a "major lawsuit" over renovations to Fed buildings. "Stocks... took the (inflation) number as confirmation that September is shaping up to be the long-anticipated 'insurance cut' in an economy still treading water above the break-even line," said Stephen Innes at SPI Asset Management. Katy Stoves, investment manager at Mattioli Woods, warned however: "This gentle cooling of the economy will certainly not justify a cut of interest rates to one percent as President Donald Trump is calling for." Early afternoon, the Nikkei 225 index was at 43,359.03, up 1.5 percent, having already hit a new intraday record high of 42,999.71 the previous day. Oil prices edged lower after OPEC raised its demand forecast for 2026, signalling it expected stronger global activity next year. Investor focus was also on a summit in Alaska on Friday between Trump and Russian leader Vladimir Putin on the three-year-old Ukraine war. In corporate news, AI firm Perplexity offered Google $34.5 billion for its Chrome web browser, which it may have to sell as part of antitrust proceedings. Intel rose 5.5 percent on Wall Street after CEO Lip-Bu Tan met with Trump, who praised the executive after previously calling for him to step down. - Key figures at around 0300 GMT - Tokyo - Nikkei 225: UP 1.5 percent at 43,359.03 Hong Kong - Hang Seng Index: UP 1.4 percent at 25,234.90 Shanghai - Composite: UP 0.5 percent at 3,683.79 Euro/dollar: UP at $1.1684 from $1.1677 on Tuesday Pound/dollar: UP at $1.3505 from $1.3501 Dollar/yen: UP at 148.04 yen from 147.77 yen Euro/pound: UP at 86.52 pence from 86.45 pence Brent North Sea Crude: DOWN 0.2 percent at $66.01 per barrel West Texas Intermediate: DOWN 0.2 percent at $63.02 per barrel New York - Dow: UP 1.1 percent at 44,458.61 (close) London - FTSE 100: UP 0.2 percent at 9,147.81 (close) bur-stu/cwl
Reuters
15-07-2025
- Business
- Reuters
Gold supported by trade tensions ahead of US inflation data
July 15 (Reuters) - Gold prices rose on Tuesday with global trade tensions supporting demand for safe-haven assets, and investors awaiting U.S. inflation data due later in the day that could give clues on the Federal Reserve's interest rate path. Spot gold gained 0.5% to $3,359.01 per ounce, as of 0635 GMT. U.S. gold futures rose 0.3% to $3,368.20. "Gold has shown in the past that it is an asset of choice when tariff tensions are ratcheted up, and the precious metal's move towards $3,350 is evidence of this pattern playing out again," KCM Trade Chief Market Analyst Tim Waterer said. "However, higher treasury yields and USD appreciation have created headwinds... For gold to make further progress towards $3,400, a pullback in the USD or treasury yields may be required in the absence of heightened geopolitical events." U.S. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, if they failed to reach a trade deal. Meanwhile, the U.S. consumer price data for June is due at 1230 GMT on Tuesday. Economists polled by Reuters expect headline inflation to increase to 2.7% on an annual basis, up from 2.4% in the prior month. Core inflation is expected to rise to 3.0%, from 2.8%. Trump on Monday renewed his attacks on Fed Chair Jerome Powell, saying interest rates should be at 1% or lower. Markets are pricing in 50 basis points of rate cuts by year-end, with the first reduction expected in September. Gold, often considered a safe-haven asset during times of economic uncertainties, tends to do well in a low interest rate environment. Elsewhere, spot silver rose 0.5% to $38.32 per ounce, after hitting its highest level since September 2011 on Monday. "Silver is benefiting from supply concerns and growing industrial demand. Also, gold's rise over the past 18 months has had investors looking elsewhere for value and silver has been one of the metals to rise as a result," Waterer said. Platinum climbed 1.1% to $1,379.22 and palladium gained 0.5% to $1,200.01.
