Latest news with #FergalSmith
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a day ago
- Business
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Canadian dollar steadies near three-week high as investor sentiment rises
By Fergal Smith TORONTO (Reuters) -The Canadian dollar was barely changed against its U.S. counterpart on Wednesday, with the commodity-linked currency holding near an earlier three-week high as investors weighed prospects of additional trade deals that could improve the global economic outlook. The loonie was trading nearly unchanged at 1.3604 per U.S. dollar, or 73.51 U.S. cents, after earlier touching its strongest intraday level since July 4 at 1.3576. "There has been very little CAD related news so it's moving along with the USD Index and general risk sentiment," said Amo Sahota, director at Klarity FX in San Francisco. "Traders will want to hear on trade deals with other major economies." Wall Street's main indexes moved higher after a Financial Times report that the EU and the United States were closing in on a trade deal, similar to the agreement U.S. President Donald Trump struck with Japan. The U.S. dollar edged lower for a fourth straight day against a basket of major currencies and the price of oil, one of Canada's major exports, settled 0.1% lower at $65.25 a barrel. Canadian retail sales data for May, due on Thursday, could offer clues on the hit from tariffs to the domestic economy. Economists forecast a monthly decline of 1.1%. Still, investors expect the Bank of Canada to keep its benchmark interest rate on hold at 2.75% at a policy decision next Wednesday, after recent data showed underlying inflation remaining well above target. "The potential of a BoC rate cut next week is slim so CAD traders are feeling somewhat passive on domestic drivers at the moment," Sahota said. Canadian bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5.4 basis points at 3.557%.
Yahoo
2 days ago
- Business
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Canadian dollar rises to two-week high, benefiting from US dollar woes
By Fergal Smith TORONTO (Reuters) -The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Tuesday as a downbeat forecast for the U.S. economy by a major investment bank weighed on the greenback. The loonie was trading 0.5% higher at 1.3615 per U.S. dollar, or 73.45 U.S. cents, after touching its strongest intraday level since July 7 at 1.3606. Goldman Sachs expects U.S. economic growth to slow to an annual rate of 1.1% in 2025 as tariff-related price increases hold back consumer spending, CNBC reported. Earlier this month, the investment bank forecast three quarter-point interest rate cuts from the Federal Reserve by the end of 2025. "The USD has been sold aggressively since these headlines crossed," said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull. "The CAD has clearly benefited from those flows." The U.S. dollar fell against a basket of major currencies, its third straight day of declines. The price of oil, one of Canada's major exports, was also down as investors worried that the global trade war will curb demand for fuel. U.S. crude oil futures fell 1.5% to $66.18 a barrel. Canada will use all the time that is available to strike a trade deal with the United States, Prime Minister Mark Carney told reporters, saying the talks were complex. On Monday, a Bank of Canada survey showed that Canadian businesses see less chance of a worst-case tariffs scenario but remain cautious and are keeping hiring and investment under check. Canadian government bond yields moved lower across the curve, with the 10-year down 2.6 basis points at 3.493%. Sign in to access your portfolio
Yahoo
11-07-2025
- Business
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Canadian dollar gains but move limited amid uncertain trade deal prospects
By Fergal Smith TORONTO (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday but the move was modest as the greenback notched broad-based gains and after new U.S. trade tariffs cast doubt about prospects of a trade deal this month between Canada and the United States. The loonie was trading 0.1% higher at 1.3675 per U.S. dollar, or 73.13 U.S. cents, after trading in a range of 1.3664 to 1.3708. On Wednesday, the currency touched a 12-day low at 1.3710. The number of Americans filing new applications for jobless benefits unexpectedly fell to a seven-week low last week, creating no urgency for the Federal Reserve to resume its interest rate cuts. "There are some heavy rate cuts baked into the (U.S.) dollar curve that are suddenly looking more questionable," said Adam Button, chief currency analyst at ForexLive. The U.S. dollar rose against a basket of major currencies, while the price of oil fell 2.6% to $66.60 a barrel as investors weighed the potential impact of U.S. tariffs on global economic growth. Oil is one of Canada's major exports. On Wednesday, U.S. President Donald Trump announced a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1. Canada is a major supplier of copper to the United States. Its government is hoping to reach a trade deal with Washington by July 21. "The market is anticipating a Canada-U.S. trade deal but that may be unrealistic," Button said. "Trump just is not in the deal making mood, at least on the kind of terms that Canada expects to achieve." Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year rose 3.3 basis points to 3.414% but stopped short of the near six-month high that was touched during Wednesday's session at 3.462%.
Yahoo
04-06-2025
- Business
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Canada's services PMI rises to 3-month high in April as confidence improves
By Fergal Smith TORONTO (Reuters) -The downturn in Canada's services economy eased somewhat in May as firms grew more hopeful that trade and political uncertainty would become less of a drag on activity over the coming 12 months, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index was at 45.6 last month, its highest level since February and up from 41.5 in April. Still, it remained well below the 50.0 no-change mark that separates growth from contraction. 'Canada's service sector continued to struggle in the face of ongoing tariff and residual political uncertainty during May, with activity and new business volumes again declining markedly," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. 'That said, there are some hopes of greater stability in the year ahead, with confidence improving since April and helping to support some marginal employment growth as firms look ahead to higher workloads in the months ahead." The measure of employment rose to 50.3 from 47.9 in April, showing job increases for the first time since December, while the Future Activity Index was at 58.9, up from 56.4. Canadian Prime Minister Mark Carney's Liberal Party retained power in April's parliamentary elections, promising sweeping changes to Canada's economy. The nation sends about 75% of its exports to the United States, including autos, steel and aluminum which have been hit with hefty U.S. duties. On Friday, U.S. President Donald Trump said he plans to increase steel and aluminum tariffs to 50% from 25%. Tariffs were reported to have raised the price of some products, contributing to cost pressures that firms attempted to pass on to clients, S&P Global said. The prices charged measure rose to its highest level in one year at 54.6, up from 48.0 in April. The S&P Global Canada Composite PMI Output Index was at 45.5 last month, recovering some ground after it hit 41.7 in April, its lowest level since June 2020. Data on Monday showed a slower pace of decline for manufacturing activity in May. The S&P Global Canada Manufacturing PMI edged up to 46.1 from 45.3 in April.
Yahoo
02-06-2025
- Business
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Canada factory PMI rises in May but sector remains in contraction
By Fergal Smith TORONTO (Reuters) -Canadian manufacturing activity contracted for a fourth straight month in May as trade uncertainty led to firms shedding workers at the fastest pace since shortly after the start of the COVID-19 pandemic, data on Monday showed. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged up to 46.1 in May from 45.3 in April but was stuck below the 50 no-change level for the fourth straight month. A reading below 50 indicates contraction in the sector. 'With manufacturers continuing to be hit by tariffs and trade uncertainty, May saw the sector experience a further significant contraction," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "The hard to predict nature of trade policies means the outlook for production remains extremely uncertain and given the recent scale of the downturn in the sector, job losses are mounting." The employment component fell to 44.9 from 47.6 in April, marking the lowest level since June 2020, while measures of output and new orders also remained in contraction. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit with hefty U.S. duties. Retaliatory tariffs have been imposed on some U.S. goods. 'Unsurprisingly, tariffs remain the primary source of price pressures, whilst also leading to an intensification of supply side delays," Smith said. The measure of input prices rose to 63.5 from 62.1 in April, leaving it just below the 31-month peak it touched in March, while the average lead times for the delivery of inputs lengthened for an 11th straight month. The deterioration in vendor performance was linked to port congestion and challenges at customs. The Future Output Index edged up to 50.9 from 50.4 in April, with some firms hopeful that government policies could help stabilize the macroeconomic environment, but was well below the survey's historical norm, S&P Global said. Canadian Prime Minister Mark Carney, whose Liberal Party retained power in an April election, has proposed sweeping changes to boost economic growth. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
