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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 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...

People shop at the Eaton Centre in Toronto on Nov. 22. CARLOS OSORIO/Reuters As disturbing as the past year has been in personal finance, 2023 threatens to be worse. A huge wave of interest rate increases hit this year. Next year, they really sink in. The cumulative impact of higher payments on mortgages, credit lines and floating rate loans will challenge households to maintain their lifestyle without incurring more debt, and slow the entire economy. Stress Test podcast: Recession-beating tips for the job market, housing, investing and cost of life One way to ease your way into 2023 is to keep a firm grip on your holiday season spending. You won’t find the religion of frugality preached here. Ya gotta live, I say. But there are ways to stay in control of your spending so that you don’t spend January regretting December. Here’s a 10-pack of ideas for you: Avoid BNPL Buy now, pay later is an option that many retailers and some credit card issuers offer where you pay for a purchase wit...

The Canadian dollar CADUSD was little changed against its U.S. counterpart on Wednesday as investors kept their eye on developments overseas even as domestic data showed underlying inflation pressures picking up. The loonie was trading nearly unchanged at 1.3610 to the greenback, or 73.48 U.S. cents, after moving in a range of 1.3590 to 1.3637. “The focus here isn’t really on domestic factors for the CAD, it’s more on global forces,” said Mazen Issa, a senior FX strategist at TD Securities. Such forces include moves by China to reopen its economy as well as hawkish shifts by the European Central Bank and the Bank of Japan, Issa said. On Tuesday, the BOJ tweaked its policy of yield curve control in a surprise move that triggered a surge in the yen. Canada’s annual inflation rate eased to 6.8 per cent in November as gasoline price rose more slowly, but an uptick in prices after excluding food and energy left the door open for another interest rate increase by the Bank of Canada next mo...

A new report suggests Canadians’ worries about debt are rising amid higher interest rates and persistent inflation. Bankruptcy trustee firm MNP says its quarterly consumer debt index fell 15 points since its last survey to an all-time low of 77 points. A lower score on the index suggests higher anxiety about debt. MNP president Grant Bazian says inflation is eroding household budgets and, at the same time, financially fragile and overleveraged Canadians face sharply rising borrowing costs. The report, based on online interviews conducted in December, says the percentage of Canadians concerned about their debt rose seven percentage points to 47 per cent, a record high. It says 64 per cent say that as interest rates rise they are more concerned about their ability to pay their debts, while 59 per cent say if interest rates go up much more, they will be in financial trouble. https://www.tausiinsider.com/canadians-debt-concerns-rising-amid-higher-interest-rates-and-persistent-inflat...

The Canadian dollar CADUSD strengthened against its U.S. counterpart on Tuesday as investors raised bets on a Bank of Canada interest rate hike this month following domestic data showing that underlying inflation pressures persist. Canada’s annual inflation rate eased more than expected to 6.3 per cent in December as gas prices came down but core measures remained little changed from the previous month, Statistics Canada said. Money markets see a 77 per cent chance of a quarter-point hike by the Bank of Canada on Jan. 25, up from 70 per cent before the data. The core measures of inflation “are a little bit stickier” than the headline, said Michael Greenberg, SVP and portfolio manager at Franklin Templeton Investment Solutions. The BoC is going to keep its “eye on the prize,” which is inflation moving back to a range of 1 per cent to 3 per cent with inflation expectations anchored, Greenberg added. The Canadian dollar was trading 0.2 per cent higher at 1.3380 to the greenback, or 74.7...

A worker arranges slabs in the factory at IceStone, a manufacturer of recycled glass countertops and surfaces, in New York, on June 3, 2021. ANDREW KELLY/Reuters New York State manufacturing contracted sharply in January as orders collapsed and employment growth stalled, pointing to continued weakness in national factory activity, and little improvement was expected over the next six months. The survey from the New York Federal Reserve on Tuesday offered an early read of conditions in one of the sectors hardest hit by the Federal Reserve’s fastest interest rate hiking cycle since the 1980s. It showed slumping demand and improved raw material supplies slowing inflation at the factory gate. National manufacturing has been shrinking since November, according to data from the Institute for Supply Management. “A variety of manufacturing surveys have been weak across recent months and the Empire State survey suggests that this weakness continued, or perhaps intensified, early this year,” s...