As of Wednesday morning, the Canadian dollar has lost about 1 ½ cents against the US dollar after reaching a three-week high at the end of last week, following disappointing...
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News and 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.
The Canadian dollar briefly touched its weakest level since April 19, falling to 1.3760 on Tuesday following the release of weaker-than-expected GDP numbers. Canada’s gross domestic product (GDP) increased by 0.2 percent in February, according to Statistics Canada, falling short of analyst estimates of 0.3 percent.
If you’re like us, you haven’t seen the inside of a retail store in months, and the Canadian dollar took a hit because of it. The Canadian dollar gave up about ½ cent against the US dollar due to weaker-than-expected retail sales in Canada. Retail numbers dropped 0.1% in February compared to the previous month. After the news, markets increased their bet that the Bank of Canada will start cutting interest rates in June to 55%, up from 50% before the report. While this is probably not the straw that breaks the camel’s back, it is yet another indication of a weakening Canadian economy and a depressed Canadian consumer.