Latest news with #ForexLive
Yahoo
11-07-2025
- Business
- Yahoo
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%.
Reuters
11-07-2025
- Business
- Reuters
Instant view: Canada's economy adds 83,100 new jobs in June
TORONTO, July 11 (Reuters) - Canada's economy added 83,100 jobs in June, the first net increase since January, and the jobless rate edged down to 6.9%, Statistics Canada data showed on Friday. Market reaction: Link: opens new tab COMMENTARY ADAM BUTTON, CHIEF CURRENCY ANALYST AT FOREXLIVE "The Canadian jobs report isn't quite as strong as it first appears but it's certainly solid and it will sideline the Bank of Canada for several months at a minimum." "Given what's happened this year, the Canadian economy is performing better than almost anyone thought it would be." "It is one of these classic Canadian employment numbers insofar as the details tell a slightly different story than what the headline number tells. But overall, 83,000 jobs, it is just a lot of jobs in the context of slowing population growth." "Just looking at the data... It suggests that perhaps there is a little bit more resilience in the economy than we had anticipated. Manufacturing sector did add jobs in the month of June, but that comes on the heels of fourth consecutive month of job losses. You are going to see that sort of inherent volatility in an environment where trade relationships are uncertain." "The solid employment report has pushed our tacking for Q2 GDP growth up slightly, although it remains in a range of -0.5-0.0%. With the unemployment rate still elevated, today's labour market data won't be the swing factor for the upcoming Bank of Canada rate decision. Next week's CPI release will play a much more important role in determining whether central bankers resume monetary easing later this month." "Canada's labour market showed its resilience in June, with employment jumping by 83K, and the unemployment rate falling by a tick to 6.9%." "While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC (interest rate) cut in July."
Reuters
30-06-2025
- Business
- Reuters
Canadian dollar gains for fifth straight month as threat to trade talks fades
TORONTO, June 30 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday, recouping all the ground it lost in a volatile pre-weekend move as trade negotiations between the U.S. and Canada resumed. The loonie was trading 0.3% higher at 1.3635 per U.S. dollar, or 73.34 U.S. cents, extending its recovery from an intraday low of 1.3758 on Friday. For June, the currency was up 0.8%. That's its fifth straight month of gains, the longest such stretch since 2020. The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms, White House economic adviser Kevin Hassett said. On Friday, U.S. President Donald Trump had said that the U.S. was immediately ending trade talks with Canada in response to the digital levy. "Anyone who sold the Canadian dollar on Friday learned another tough lesson that Trump headlines are to be faded," said Adam Button, chief currency analyst at ForexLive. "The market is increasingly eager to buy the dip on any opportunity and that includes selling the (U.S.) dollar." The U.S. dollar (.DXY), opens new tab declined against a basket of major currencies as markets considered the prospect of a ballooning U.S. government deficit and the potential for trade deals with major trading partners. The price of oil, one of Canada's major exports, was trading 0.8% lower at $65.00 a barrel as investors weighed easing Middle East risk and prospects of an OPEC+ output increase in August. Canadian bond yields were mixed across a flatter curve, with the 10-year down 3.4 basis points at 3.274%. It was an early close for the bond market ahead of the Canada Day holiday on Tuesday.
CNA
27-06-2025
- Business
- CNA
Dollar gains as Trump reignites trade concerns
NEW YORK :The dollar retraced earlier losses against the euro on Friday after U.S. President Donald Trump said the United States was ending trade talks with Canada and that he would consider bombing Iran again, denting risk appetite and sending stocks lower. "Taken together, both messages highlight how erratic Trump is and that any assumptions built into markets can be instantly undermined," said Adam Button, chief currency analyst at ForexLive. "The knee-jerk has been to buy the U.S. dollar but once the smoke clears, that's likely to retrace. The trade war has been a dollar drag all year," Button said. U.S. Treasury Secretary Scott Bessent said earlier on Friday the Trump administration's various trade deals with other countries could be done by the Sept. 1 Labor Day holiday. The Canadian dollar extended losses on the day, however, after Trump said the U.S. is immediately ending trade talks with Canada in response to the country's digital services tax on technology companies. It was last down 0.5 per cent versus the greenback at C$1.37 per dollar. Trump also sharply criticized Iran's Supreme Leader Ali Khamenei, dropped plans to lift sanctions on Iran and said he would consider bombing Iran again if Tehran is enriching uranium to worrisome levels. The dollar dropped to a three-and-a-half-year low against the euro earlier on Friday as traders bet that the Federal Reserve will cut rates more times and possibly sooner than previously expected as some U.S. data points to a weakening economy. A report on Friday showed that U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of tariffs faded, while monthly inflation increases remained moderate. A weekly jobs report on Thursday showed that continuing unemployment claims rose to the highest level since November 2021 while gross domestic product figures for the first quarter reflected a sharp downgrade to consumer spending. 'Some of the data that we've had has not been particularly good over the last few days,' said Lou Brien, strategist at DRW Trading in Chicago. Fed Chair Jerome Powell's testimony to U.S. Congress this week was interpreted as dovish after he noted that rate cuts are likely if inflation doesn't increase this summer as he expects. Reports that U.S. President Donald Trump could also appoint a replacement for Powell in the coming months have added to dollar weakness. The new Fed chair is expected to be more dovish and an early appointment could undermine Powell's influence by acting as a shadow chair before Powell's term ends in May. Trump has not decided on Powell's replacement and a decision isn't imminent, a person familiar with the White House's deliberations said on Thursday. Fed rate cuts would reduce the interest rate advantage of the dollar relative to peers. Traders are pricing in 65 basis points of cuts by year end, up from 46 basis points a week ago. The dollar index was little changed on the day at 97.36 and is on pace for a 1.40 per cent weekly decline, the worst since May 19. The euro was last up 0.05 per cent at $1.1705 and reached $1.1754, the highest since September 2021. It is on track for a 1.57 per cent weekly gain, the best since May 19. Sterling weakened 0.19 per cent to $1.3701 and was on track for a 1.85 per cent weekly gain, its best week since May 19. The dollar fell 0.06 per cent to 0.8 Swiss franc and is heading for a 2.26 per cent weekly drop, the largest since April 7. Top U.S. Republicans also confronted a yawning budget hole in their sprawling tax-cut and spending bill on Friday, signaling that they could miss Trump's July 4 deadline as they rewrite dozens of elements rejected by a nonpartisan referee. The long-term outlook for the dollar is seen as challenging as foreign investors reevaluate the 'American exceptionalism' that has drawn investment to the country. Brien said that the impact of the Biden administration's policies was also still weighing on the currency. Former President Joe Biden cut off Russia's access to the U.S. dollar, froze its assets and imposed sanctions following the country's invasion of Ukraine in 2022, which analysts say led other countries to accelerate shifts away from U.S. dollar reliance. 'The Biden administration weaponized the dollar as it really had not been weaponized before,' Brien said. 'That aspect of it is still in the back of people's heads.' Against the yen, the dollar strengthened 0.19 per cent to 144.65. It is headed for a 0.94 per cent weekly decline against the Japanese currency, the largest since May 19. Core consumer inflation in Japan's capital slowed sharply in June due to temporary cuts to utility bills but stayed well above the central bank's 2 per cent target, keeping alive market expectations for further interest rate hikes. In cryptocurrencies, bitcoin fell 0.86 per cent to $106,879.
See - Sada Elbalad
25-06-2025
- Business
- See - Sada Elbalad
Dollar Weakens after Iran-Israel Ceasefire; Euro Hits Highest Level
Taarek Refaat The US dollar slipped during trading on Tuesday, June 24, while the euro climbed to its highest level since October 2021. This movement followed the announcement of a ceasefire between Iran and Israel, alongside Federal Reserve Chair Jerome Powell's recent remarks forecasting a rise in US inflation this summer. The ceasefire began to hold under strong pressure from US President Donald Trump, sparking cautious optimism about ending the largest military confrontation ever recorded between Israel and Iran. Market Reaction and Currency Movements Adam Button, Chief Currency Analyst at ForexLive in Toronto, commented: 'The market is currently pulling back from its earlier bets on Middle East tensions.' The euro and the Japanese yen both appreciated amid falling oil prices. This reflects the energy import dependence of the European Union and Japan on oil and liquefied natural gas, in contrast to the US, which is a net exporter of these commodities. The euro gained 0.28%, closing at $1.161 after peaking at $1.1641 earlier in the session. The dollar fell 0.86% against the Japanese yen, to 144.89 yen. The Australian dollar, sensitive to risk sentiment, rose 0.46% against the US dollar to $0.6486. The British pound climbed 0.77% to $1.3626, touching earlier highs not seen since January 2022. Egyptian Pound Rates: US Dollar 49.8363 49.9763 Euro 57.8400 58.0075 Powell's Inflation Outlook and Fed Policy Despite the dollar's decline, Federal Reserve Chair Jerome Powell's testimony before Congress underscored expectations for rising inflation in the US over the near term. Powell emphasized that the Fed is in no hurry to cut interest rates, even as some other Fed officials signal support for rate reductions soon. This mixed messaging left traders searching for clear guidance: Powell noted a strong labor market without signs of weakening, contrasting with Fed policymakers Christopher Waller and Michelle Bowman, who observed early softening. Adam Button noted: 'The market anticipated a strong signal on imminent rate cuts, but Powell remains cautious.' Rate Cut Speculation Vice Chair Michelle Bowman suggested rate cuts may be approaching, while Christopher Waller urged consideration of cuts at the Fed's next meeting. President Trump also advocated for reducing rates by 2 to 3 percentage points. Futures markets have increased their expectations for rate cuts this year to 60 basis points from 46 basis points before Waller's remarks. This implies two cuts of 25 basis points are considered likely, with a rising chance of a third cut. However, a rate cut is unlikely at the upcoming Fed meeting on July 29-30, with markets eyeing the first cuts in September or October. Dollar Outlook Vasily Serebryakov, FX strategist at UBS New York, said: 'If the US economy deteriorates faster and the Fed cuts rates more aggressively than expected, the dollar could weaken significantly.' However, he added: 'If rate cuts are delayed until September and limited to two this year, the dollar may weaken moderately but not drastically.' US Consumer Confidence Deteriorates Adding to market caution, June data revealed an unexpected decline in US consumer confidence, with families expressing heightened concern over job conditions and employment prospects over the next six months. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
