News and Updates

The Canadian dollar is a quarter of a penny lower against the US dollar on Tuesday morning, following US inflation data that came in slightly higher than expected. This development has dampened the mood of investors who had hoped for a lower inflation number to cement further rate cuts by the Federal Reserve (Fed) in 2024. Currently, the Fed has hinted at 50 basis points of cuts, while the market is expecting 100 basis points. Fewer cuts by the Fed mean a stronger US Dollar compared to the Canadian dollar.

The Canadian dollar is lower Monday morning against the US Dollar after touching a 2-month high on Friday following the release of better-than-expected November jobs data. The weakening of the Canadian dollar appears to be based on a broad, risk-averse investor sentiment this morning after reports that a U.S. destroyer and three commercial ships operating in the Red Sea came under attack yesterday.

Friday morning has been more of the same for the Canadian dollar, which has been grinding out small gains against the US Dollar all week, based primarily on ever-growing expectations of interest rate cuts and optimism that the global economy is headed for a soft landing. Both interest rate cuts and avoiding a prolonged and deep recession would be beneficial to the Canadian economy and the Canadian dollar. The Canadian dollar also got a boost from OPEC talks about crude oil production