Latest news with #USDCAD
Yahoo
15-07-2025
- Business
- Yahoo
Canadian dollar to strengthen; analysts see 'systemic weakness' for USD through 2025
The Canadian dollar is expected to rise against its American counterpart through 2025, say analysts predicting investors will continue to shun the U.S. currency. ATB Capital Markets head of currencies Bill Kellett says the story remains one of U.S. dollar weakness, rather than loonie strength. He expects both currencies will underperform through the remainder of the year, with the American dollar falling harder than Canada's currency. 'USD weakness will likely outpace CAD weakness, setting up for a move lower in USD/CAD,' he wrote in a research report on Monday. 'We anticipate USD/CAD will drift moderately lower over the second half of 2025, edging down to the low 1.3000's.' U.S. President Donald Trump's chaotic trade agenda continues to stoke fears of rising inflation and softer growth among global investors. Uncertainty linked to Trump's unpredictable bursts of tariffs against major economies has raised questions about the stability of the U.S. dollar and its role as the global reserve currency. 'While dramatic capital rotation out of the U.S. is not a sustainable reality, the USD is showing signs of longer-term systemic weakness,' Kellett wrote. 'We expect the theme of USD weakness will continue through the balance of 2025, and this variable will be the main overarching factor impacting FX markets.' CIBC economists Avery Shenfeld and Katherine Judge agree. 'The Canadian dollar has remained on a strengthening trajectory recently, but that continues to be a reflection of the broad USD falling out of favour with investors, rather than a case of strong Canadian fundamentals,' they wrote in the bank's July foreign exchange report. 'Markets are pricing in a slightly more modest dose of easing from the Bank of Canada than we expect, and look to be too optimistic on Fed cuts,' they added. 'That leans towards pressure on the loonie in the near term, but progress on trade negotiations over the next few months could be an offset, leaving USDCAD relatively stable at 1.37 into the end of Q3.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android.
Reuters
04-07-2025
- Business
- Reuters
Canadian dollar pares weekly gain as downturn deepens in services economy
TORONTO, July 4 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as the recent uptick in risk appetite lost momentum and after the release of downbeat data for Canada's services sector, but the currency was still headed for a weekly gain. The loonie was trading 0.2% lower at 1.3605 per U.S. dollar, or 73.50 U.S. cents, after moving in a range of 1.3567 to 1.3612. For the week, the currency was on track to advance 0.6%. "A spike in risk aversion in thin, late week trading has chipped away at the CAD's rise (this week) a little but markets remain keen to pick up CAD on minor dips," Shaun Osborne and Eric Theoret, strategists at Scotiabank, said in a note. "This is a view we endorse." A weak trend for the U.S. dollar, positive risk sentiment and higher metal prices have contributed to an improvement in the estimated fair value of the Canadian dollar over the past month, the strategists said. Canada is a major producer of copper as well as other commodities, such as oil. With the U.S. markets closed for Independence Day, attention has turned to U.S. President Donald Trump's July 9 deadline for sweeping tariffs take to effect on countries that have not yet secured trade agreements with the United States. Canadian Prime Minister Mark Carney and Trump have agreed to reach some form of a trade deal by July 21. Canada's services economy contracted at a steeper pace in June as uncertainty generated by U.S. trade policy depressed activity and cost pressures increased, S&P Global's Canada services PMI data showed. The headline Business Activity Index fell to 44.3 last month from 45.6 in May. The price of oil fell 1% to $66.33 a barrel on expectations that OPEC+ producers will decide this weekend to raise output, while the Canadian 10-year yield was down 3.3 basis points at 3.361%, after earlier touching its highest level since June 16 at 3.402%.
Yahoo
04-07-2025
- Business
- Yahoo
Canadian dollar pares weekly gain as downturn deepens in services economy
TORONTO (Reuters) -The Canadian dollar weakened against its U.S. counterpart on Friday as the recent uptick in risk appetite lost momentum and after the release of downbeat data for Canada's services sector, but the currency was still headed for a weekly gain. The loonie was trading 0.2% lower at 1.3605 per U.S. dollar, or 73.50 U.S. cents, after moving in a range of 1.3567 to 1.3612. For the week, the currency was on track to advance 0.6%. "A spike in risk aversion in thin, late week trading has chipped away at the CAD's rise (this week) a little but markets remain keen to pick up CAD on minor dips," Shaun Osborne and Eric Theoret, strategists at Scotiabank, said in a note. "This is a view we endorse." A weak trend for the U.S. dollar, positive risk sentiment and higher metal prices have contributed to an improvement in the estimated fair value of the Canadian dollar over the past month, the strategists said. Canada is a major producer of copper as well as other commodities, such as oil. With the U.S. markets closed for Independence Day, attention has turned to U.S. President Donald Trump's July 9 deadline for sweeping tariffs take to effect on countries that have not yet secured trade agreements with the United States. Canadian Prime Minister Mark Carney and Trump have agreed to reach some form of a trade deal by July 21. Canada's services economy contracted at a steeper pace in June as uncertainty generated by U.S. trade policy depressed activity and cost pressures increased, S&P Global's Canada services PMI data showed. The headline Business Activity Index fell to 44.3 last month from 45.6 in May. The price of oil fell 1% to $66.33 a barrel on expectations that OPEC+ producers will decide this weekend to raise output, while the Canadian 10-year yield was down 3.3 basis points at 3.361%, after earlier touching its highest level since June 16 at 3.402%. 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
Reuters
28-05-2025
- Business
- Reuters
Canadian dollar dips as greenback notches broad-based gains
TORONTO, May 28 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as recent U.S. economic data bolstered the appeal of the American currency and ahead of domestic GDP data that could guide expectations for the Bank of Canada policy decision. The loonie was trading 0.2% lower at 1.3830 per U.S. dollar, or 72.31 U.S. cents, extending its pullback from a seven-month high on Monday at 1.3684. "It's a U.S. dollar story - the U.S. dollar is outperforming across the board," said Rahim Madhavji, president at "The U.S. economy is potentially doing better than some had expected." Data on Tuesday showed that U.S. consumer confidence improved in May after deteriorating for five straight months amid a truce in the trade war between Washington and China. "All eyes are looking towards the GDP data on Friday in Canada, which will obviously be a key indicator for the Bank of Canada," Madhavji said. Canadian gross domestic product data, due on Friday, is expected to show that the economy grew at an annualized rate of 1.7% in the first quarter, down from 2.6% in the previous quarter. Investors expect the BoC to leave its benchmark interest rate on hold at 2.75% at a policy decision meeting next Wednesday after recent domestic data showed underlying inflation heating up in April. The central bank paused its easing campaign last month for the first time since it began cutting rates in June. The price of oil, one of Canada's major exports, settled 1.6% higher at $61.84 a barrel as OPEC+ agreed to leave its output policy unchanged and the U.S. barred Chevron CVX.N from exporting Venezuelan crude. The Canadian 10-year yield eased half a basis point to 3.252%, while it was trading 5.1 basis points further below the equivalent U.S. rate at a gap of nearly 123 basis points.
Globe and Mail
10-04-2025
- Business
- Globe and Mail
USDCAD Completes A Correction Within An Uptrend
The USD/CAD came nicely to the downside last week out of a bearish triangle that was placed in wave B. But then the market made a sharp reversal; We see a strong and interesting rebound away from the 1.40 region, which raises the possibility that a low is in place, especially as price already recovered above the 1.4230 level, where an overlap invalidated any higher-degree bearish impulsive interpretation. That's a strong indication that a bottom may be forming and that we should be aware of more upside after the current intraday retracement which can be close to a support. So from a minimum perspective, we expect at least one more leg up to around 1.44. The reason why USDCAD can stay in the uptrend is because of bearish Crude oil, which can keep Canadian dollar weak. If we also consider a bigger corrective recovery for the USdollar Index, then USDCAD can be easily headed higher. For a detailed view and more analysis like this, you may want to watch below our latest recording of a live webinar streamed on April 07 2025.
