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The Canadian dollar CADUSD strengthened to a seven-week high against its U.S. counterpart on Thursday as U.S. inflation pressures cooled and Bank of Canada Governor Tiff Macklem said the economy could avoid a major rise in the unemployment rate. The loonie was trading 1.2% higher at 1.3370 to the greenback, or 74.79 U.S. cents, after touching its strongest level since Sept. 20 at 1.3334. “The U.S. dollar fell sharply in a broad-based way and the loonie has benefited from that,” said Rahim Madhavji, president at KnightsbridgeFX.com . “There were a lot of people that were long the U.S. dollar and short some of the other currencies … so a lot of people are closing position.” The greenback fell sharply against a basket of major currencies, bond yields tumbled and Wall Street rallied after U.S. consumer prices rose less than expected last month, data that may allow the Federal Reserve to ease up on aggressively hiking interest rates. The Bank of Canada has also been tightening at a rapid ...

The Canadian dollar CADUSD strengthened to its highest level in eight weeks against its U.S. counterpart on Tuesday, as the greenback broadly declined and domestic data showed a surprise increase for wholesale trade in September. The U.S. dollar fell against a basket of major currencies and U.S. stock index futures rallied as data showed that U.S. producer prices increased less than expected in October, providing further evidence that inflation was starting to subside. Canadian wholesale trade increased by 0.1 per cent in September from August, beating expectations for a 0.2 per cent decline, helped by higher sales of pharmaceutical products, data from Statistics Canada showed. Separate data showed that manufacturing sales were unchanged in September from August, an outcome that was also stronger than expected. Canada’s inflation data for October is awaited by investors on Wednesday for clues as to whether the Bank of Canada would raise interest rates by 25 or 50 basis points at its ...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Wednesday, pulling back from an eight-week high, as oil prices fell and investors weighed domestic inflation data that could leave the door open to a smaller rate Bank of Canada rate hike. Canada’s annual inflation rate held steady at 6.9 per cent in October, matching analyst forecasts, while core inflation measures were mixed, Statistics Canada data showed. Money markets have fully priced in a 25 basis point interest rate hike by the BoC at its next policy decision on Dec. 7 and see a 35 per cent chance of a larger hike of 50 basis points, up from about 30 per cent before the data. The central bank hiked by 50 basis points last month, lifting its policy rate to a 14-year high of 3.75 per cent. The price of oil, one of Canada’s major exports, fell as geopolitical tensions following an attack on an oil tanker off the coast of Oman were offset by concerns over rising COVID-19 cases in China. U.S. crude prices fell 2 pe...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Friday, with the currency adding to this week’s decline as oil prices fell and data showed the largest divestment of Canadian securities by foreign investors in nearly four years. The price of oil, one of Canada’s major exports, was on track for a second weekly decline, pressured by concern about weakening demand in China and further interest rate rises by the U.S. Federal Reserve. U.S. crude prices fell 3.7 per cent to $78.62 a barrel, while the Canadian dollar was trading 0.3 per cent lower at 1.3360 to the greenback, or 74.85 U.S. cents. It traded in a range of 1.3301 to 1.3368. For the week, it was on track to decline 0.8 per cent, after four straight weeks of gains. Foreign investors sold a net C$22.3-billion ($16.7-billion) in Canadian securities in September, led by federal government bonds, following a revised C$26.2-billion total purchase in August, Statistics Canada said. This was the largest divestment sin...

The Canadian CADUSD dollar weakened to its lowest level in 11 days against its U.S. counterpart on Monday as rising COVID-19 cases in China weighed on investor sentiment and speculation that OPEC would increase output led to volatility in the price of oil. The loonie was trading 0.4% lower at 1.3440 to the greenback, or 74.40 U.S. cents, after touching its weakest intraday level since Nov. 10 at 1.3495. “It’s predominantly being driven by exogenous factors,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets. “We see the (U.S.) dollar up across the board; including against the Canadian dollar.” The safe-haven U.S. dollar advanced against a basket of major currencies, recouping some recent losses, as fresh COVID-19 curbs in China fuelled worries over the global economic outlook and made traders shun riskier currencies. The price of oil, one of Canada’s major exports, whipsawed as reports varied about whether Saudi Arabia and other OPEC oil producers are consider...

The Canadian dollar CADUSD rose against its U.S. counterpart on Tuesday as investor risk appetite picked up and preliminary domestic data showed retail sales climbing in October, while investors awaited comments by a senior Bank of Canada policy-maker. Canadian retail sales fell by 0.5 per cent in September from August, matching estimates, weighed by lower sales at gasoline stations, data from Statistics Canada showed. However, a flash estimate showed sales rebounding by 1.5 per cent in October. Other flash estimates were also upbeat, with manufacturing sales rising 2 per cent and wholesale trade up 1.3 per cent. Global shares recovered some of the previous day’s losses, drawing comfort from less-hawkish comments on interest-rate hikes by Federal Reserve policy-makers, although concern over more COVID infections in China kept gains in check. The safe-haven U.S. dollar fell against a basket of major currencies, while the price of oil, one of Canada’s major exports, rose after top expo...

The Canadian dollar CADUSD weakened on Wednesday against its U.S. counterpart and all the other G10 currencies as oil prices fell and ahead of a parliamentary appearance by Bank of Canada Governor Tiff Macklem. The price of oil, one of Canada’s major exports, declined as the Group of Seven (G7) nations looked at a price cap on Russian oil above where the crude grade is currently trading. U.S. crude prices were down 3.1 per cent at $78.43 a barrel. Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will appear before the House of Commons Standing Committee on Finance at 4:30 p.m. ET (2130 GMT). On Tuesday, Rogers said that higher interest rates are starting to slow the Canadian economy, putting pressure on households with elevated debt and people who recently bought a home with a variable-rate mortgage. To reduce inflation pressures, Canada’s central bank is aiming to slow demand so that supply can catch up. But spending on affordability measures by federal...

The Canadian dollar CADUSD gained slightly against its broadly weaker U.S. counterpart on Thursday after the Federal Reserve sent a dovish signal on the pace of interest rate hikes and as oil prices steadied. The loonie was up 0.1% at 1.3340 to the greenback, or 74.96 U.S. cents, in a quiet North American session with U.S. markets closed for Thanksgiving. The currency traded in a range of 1.3317 to 1.3362. “The USD tone remains defensive,” Shaun Osborne, chief currency strategist at Scotiabank, said in a note. The greenback swooped towards a three-month low against a basket of major currencies and world shares touched a two-month high after minutes from the Fed’s latest meeting, released on Wednesday, pointed to a slower pace of U.S. rate rises from next month. The Bank of Canada has already downshifted the pace of its rate increases but is likely not done yet with tightening. Money markets are pricing in a 25 basis point move at the next policy decision on Dec. 7. “Resilient growth,...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Friday, giving back its weekly gain, as oil prices fell and the greenback gained ground against a basket of major currencies. The loonie was trading 0.3% lower at 1.3380 to the greenback, or 74.74 U.S. cents, in a quiet session for North American financial markets after the U.S. Thanksgiving holiday. The currency moved in a range of 1.3318 to 1.3398. For the week, it was nearly unchanged. The U.S. dollar rose but remained near multi-month lows as investors weighed prospects of the Federal Reserve moderating the pace of its policy tightening. The Bank of Canada has also been raising interest rates. Canadian third-quarter GDP data and the November employment report, due next week, could guide expectations for the pace of additional tightening. The price of oil, one of Canada’s major exports, settled 2.1% lower at $76.28 a barrel, closing a week marked by worries about Chinese demand and haggling over a Western price ca...

The Canadian dollar CADUSD weakened to a one-week low against its U.S. counterpart on Monday, as anti-lockdown protests in China weighed on investor sentiment and data showed Canada’s current account balance swinging to a deficit. Stocks and the price of oil, one of Canada’s major exports, suffered a broad sell-off as rare protests in major Chinese cities against the country’s strict zero-COVID-19 curbs hit growth expectations in the world’s second-largest economy. U.S. crude prices fell 2.6 per cent to $74.31 a barrel, while the Canadian dollar was trading 0.6 per cent lower at 1.3458 to the greenback, or 74.31 U.S. cents, after touching its weakest level since Nov. 21 at 1.3473. Canada posted a current account deficit of C$11.1-billion ($8.3-billion) in the third quarter after surpluses in the first two quarters of 2022, data from Statistics Canada showed. “We expect deficits to persist into 2023 as trade and income flows return to more normal patterns,” Shelly Kaushik, an economis...

The Canadian dollar CADUSD strengthened against its U.S. counterpart on Wednesday, clawing back nearly all of its previous day’s decline, as hopes that China would soon reopen its economy bolstered commodity prices. The price of oil, one of Canada’s major exports, was up 3.8 per cent at $81.14 a barrel on signs of tighter supply and optimism over a Chinese demand recovery. The Chinese city of Guangzhou has relaxed COVID prevention rules in several districts in an effort to implement rules authorities announced this month aimed at easing the burden of the strict zero-COVID policy. World equity markets were lifted by hopes that inflation is peaking and a re-opening of China’s economy is near, while the U.S. dollar lost ground against a basket of major currencies ahead of a speech by U.S. Federal Reserve Chair Jerome Powell later in the day. The Canadian dollar was trading 0.6 per cent higher at 1.3502 to the greenback, or 74.06 U.S. cents, after moving in a range of 1.3497 to 1.3593. A...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Thursday as investors reduced bets on another oversized interest rate hike by the Bank of Canada next week and despite the greenback losing ground against some major peers. The loonie was trading 0.2% lower at 1.3430 to the greenback, or 74.46 U.S. cents, giving back some of its gains from the previous day when Federal Reserve Chair Jerome Powell said that U.S. rate hikes could slow in December. It was the only G10 currency to lose ground against the U.S. dollar. The greenback fell 1.1% against a basket of major currencies. “In a weak U.S. dollar environment, the Canadian dollar often lags,” said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. “You get paid more in the U.S. (currency).” Canadian money markets offer lower rates than in the United States, anticipating that the Federal Reserve will raise interest rates this cycle to a higher endpoint than the Bank of Canada. Chances that the BoC ...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Friday as domestic jobs data caused few surprises, while a stronger-than-expected U.S. jobs gain ran counter to hopes that the Federal Reserve would soon slow the pace of rate hikes. The loonie was trading 0.4 per cent lower at 1.3485 to the greenback, or 74.16 U.S. cents, after trading in a range of 1.3421 to 1.3520. For the week, it was down 0.8 per cent. “The strong U.S. employment data has lent some support to the USD but has caused U.S. equities to sell off on the prospect of higher rates,” said George Davis, chief technical strategist at RBC Capital Markets. “We have seen persistent CAD selling on the crosses this week,” said Davis, adding that these flows, against currencies such as the euro, sterling and the yen, weighed on the Canadian dollar. U.S. stock indexes fell as the U.S. jobs data reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening. Ca...

The Canadian dollar CADUSD weakened to a six-day low against its U.S. counterpart on Monday, as investors worried that signs of U.S. economic resilience would extend the length of the Federal Reserve’s campaign to raise interest rates. The loonie was trading 1% lower at 1.3601 to the greenback, or 73.52 U.S. cents, its weakest level since last Tuesday. “The CAD is down as the movement in the currency continues to be more correlated with the S&P 500 then the price of oil,” said Tony Valente, senior FX dealer at AscendantFX. “Right now, the market is taking good economic news as bad news for equities because it means that the Fed and the Bank of Canada would be hiking rates higher for longer.” The main U.S. benchmarks dropped as investors fretted that better-than-expected service-sector activity challenged potential for a less aggressive stance by the Fed. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment. ...

The Canadian dollar CADUSD weakened against its U.S. counterpart and all the other G10 currencies on Tuesday, as oil prices fell and despite data showing that Canada’s trade surplus widened in October. U.S. crude prices were down 0.7 per cent at $76.36 a barrel as economic uncertainty offset the bullish impact of a price cap placed on Russian oil and the prospects of a demand boost in China. Oil is one of Canada’s major exports. Canadian exports and imports both climbed in October, impacted by the loonie’s depreciation in the month, while the trade surplus widened to C$1.2-billion ($888.5-million) from C$607-million, data from Statistics Canada showed. The Canadian dollar was trading 0.3 per cent lower at 1.3628 to the greenback, or 73.38 U.S. cents, the biggest decline among G10 currencies. It touched its weakest since last Tuesday at 1.3641. Stronger than expected U.S. services industry data on Monday has driven speculation that the Federal Reserve will stick longer with aggressive...

The Canadian dollar CADUSD strengthened against its U.S. counterpart on Wednesday, rebounding from an earlier one-month low, as markets priced in a slightly higher endpoint for interest rate hikes following the Bank of Canada’s latest oversized policy move. The BoC raised its benchmark overnight interest rate by 50 basis points to the highest level in almost 15 years but it eliminated the forward guidance it has used since it began cranking rates higher in March, dropping language that said they would have to rise further. “It looks like markets have taken it a little more hawkish than expected but our take is we’re in the last throes of the rate tightening cycle and moving pretty close to a hold,” said Darcy Briggs, a portfolio manager at Franklin Templeton Canada. Money markets moved to price in a terminal rate, or peak level for interest rates this cycle, of 4.43 per cent in June, up about 7 basis points from before the policy decision. The Canadian dollar was trading 0.4 per cent...

The Canadian dollar CADUSD strengthened against its U.S. counterpart on Thursday as the price of oil rebounded and ahead of a speech by a senior Bank of Canada official that could offer clues on the likelihood of additional interest rate hikes. Oil, one of Canada’s major exports, rose after four sessions of decline, boosted by hopes that easing anti-COVID-19 measures in China will revive demand and by signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect. U.S. crude prices were up 2.2 per cent at $73.60 a barrel, while the Canadian dollar gained 0.6 per cent to 1.3565 per greenback, or 73.72 U.S. cents. It traded in a range of 1.3562 to 1.3688, after touching on Wednesday its weakest intraday level in more than one month at 1.3699. Sharon Kozicki, a deputy governor at the Bank of Canada, is due to give an economic progress after the central bank on Wednesday hiked its benchmark overnight interest rate by half a percentage point and signa...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Friday, adding to this week’s decline, as hotter-than-expected U.S. producer price data challenged hopes the Federal Reserve would shift to a less aggressive path for interest rate hikes. U.S. stock index futures turned negative after U.S. producer prices rose more than expected in November. Investors have worried that an extended period of Fed tightening to lower inflation could trigger a recession. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the signal that stock markets send about global economic prospects. The Canadian dollar was trading 0.3% lower at 1.3640 to the greenback, or 73.31 U.S. cents, after moving in a range of 1.3570 to 1.3690. For the week, it was on track to decline 1.3% as oil slumped to its lowest level this year. U.S. crude oil futures clawed back some of those losses on Friday, rising 1.8% to $72.71 a barrel. The Bank of Canada has also been ...

The Canadian dollar CADUSD was little changed against the greenback on Monday, holding near a multi-week low, as investors awaited possible clues on the Bank of Canada policy outlook and then a Federal Reserve interest rate decision later this week. The BoC has said it will study the most recent economic data to gauge whether to raise its benchmark rate further after lifting it last Wednesday to 4.25%, the highest in nearly 15 years. Money markets see a roughly 40% chance that the central bank would hike by 25 basis points at its next policy decision on Jan. 25. Governor Tiff Macklem’s prepared remarks are due for release at 3:25 p.m. ET (2025 GMT). “The market wants to ascertain have we hit peak rates,” said Amo Sahota, director at Klarity FX in San Francisco. “Whether the markets have enough juice in them to make a directional play this side of the U.S. CPI number and the FOMC then on Wednesday would be interesting.” U.S. consumer price data for November lands on Tuesday, while the...

The Canadian dollar CADUSD rallied against its broadly weaker U.S. counterpart on Tuesday, as data showing an easing of U.S. inflation pressures supported bets the Federal Reserve would dial back the pace of its interest rate hikes. U.S. stock index futures rallied and the greenback fell against a basket of major currencies as U.S. core consumer prices rose 0.2 per cent last month after increasing 0.3 per cent in October, with the year-over-year pace slowing to 6 per cent. The Fed is widely expected to raise rates by half a percentage point on Wednesday after tightening in steps of 75 basis points in recent months. The Bank of Canada has also been raising rates at a rapid pace. It is trying to hike enough to tame inflation without forcing the economy into a deep recession, but the greater risk of the two is sticky inflation, which would require “much higher” rates, Governor Tiff Macklem said on Monday. Money markets see a one-third chance the BoC would tighten by 25 basis points at i...