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Canadian Dollar Holds Steady But Expected to Weaken Against USD

By Daily Updates

With a light week in terms of economic data, the Canadian dollar has been treading water for the first few days of this week, trading between 1.3690 and 1.3790 versus the US dollar. However, the latter half of the week includes the Bank of Canada’s (BoC) latest Summary of Deliberations, slated to be released on Wednesday, as well as Canadian Retail Sales coming out on Friday.

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Canadian Dollar Strengthens As US Inflation Eases

By Daily Updates

Wednesday morning’s US inflation report, the consumer price index (CPI), indicated that inflation rose by 3.3% annually last month, while core prices climbed by 3.4%. This marks the smallest year-over-year increase since 2021. The cooling inflation could boost the likelihood of the Federal Reserve cutting interest rates later this year, especially as the Fed concludes its policy meeting today.

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Canadian Dollar Poised to Sink Below 1.38

By Daily Updates

With global political uncertainty abound after the surprising EU Parliament elections, which saw far-right parties gaining across most European nations, financial markets are taking a risk-off approach this morning. The most notable results were in France, where President Macron called a snap election for the end of June in what is being described as an all-or-nothing gamble.

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Canadian Dollar Direction Driven by Interest Rate Expectations

By Daily Updates

The USD/CAD currency pair is slightly higher in early afternoon trading on Wednesday as markets nervously await the release of the Federal Open Market Committee (FOMC) minutes later in the day. Markets are looking to the release of the FOMC minutes to possibly shed light on when the Fed will feel confident enough to shift into its rate reduction cycle. Currently, markets are anticipating a rate cut in September or November of this year.

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Canadian Dollar Comes out of its Tail Spin

By Daily Updates

Heading into the Victoria Day long weekend, the Canadian dollar is sitting pretty. It has gained 1.5 cents this month against the US dollar, following an explosive jobs report last Friday and weaker-than-expected economic data from the US. Just as recently as two weeks ago, economists were floating the idea that the BoC could be cutting rates at the same time as the Fed was increasing interest rates. This would have been the definition of a disastrous situation for the Canadian dollar.

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Canadian Dollar Recovers on Comments from Powell and Macklem

By Daily Updates

The Canadian dollar experienced significant losses early in the week against the US dollar, following Tuesday’s lower-than-expected Canadian GDP figures and Federal Reserve Chairman Powell’s hawkish remarks on inflation progress on Wednesday. These events prompted some investors to speculate about the possibility of further rate hikes by the Fed, highlighting the potential major divergence in monetary policy and interest rate directions between the Bank of Canada and the Federal Reserve.

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