financetom
World
financetom
/
World
/
CANADA FX DEBT-Canadian dollar weakens ahead of potential BoC dovish shift
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
CANADA FX DEBT-Canadian dollar weakens ahead of potential BoC dovish shift
Apr 9, 2024 12:06 PM

*

Canadian dollar weakens 0.1% against the greenback

*

Loonie trades in a range of 1.3548 to 1.3598

*

Price of U.S. oil settles 1.4% lower

*

Canadian bond yields fall across the curve

By Fergal Smith

TORONTO, April 9 (Reuters) - The Canadian dollar edged

lower against its U.S. counterpart on Tuesday as oil prices fell

and investors priced in some risk that the Bank of Canada would

signal the start of an interest rate cutting campaign at this

week's policy decision.

Money markets expect the Canadian central bank to leave its

benchmark rate on hold at a 22-year high of 5% on Wednesday but

to then begin cutting in June.

"Even if the Bank of Canada does not cut rates tomorrow, the

market seems to be positioned for either a dovish comment or

further weakness in the Canadian dollar," said Marc Chandler,

chief market strategist at Bannockburn Global Forex LLC.

Speculators have raised their bearish bets on the Canadian

dollar to the highest since December, data from the U.S.

Commodity Futures Trading Commission showed on Friday.

"The case (for a rate cut) is building ... inflation has

fallen more than expected for the past two months and the

unemployment rate is up to 6.1% from 5% a year ago," Chandler

said.

The Canadian dollar was trading 0.1% lower at 1.3585

to the U.S. dollar, or 73.61 U.S. cents, after trading in a

range of 1.3548 to 1.3598. On Friday, it touched a three-month

low at 1.3647.

U.S. crude oil futures settled down 1.4% at $85.20 a

barrel, giving back some recent gains for a second day. Oil is

one of Canada's major exports.

Canadian government bond yields moved lower across the

curve, tracking moves in U.S. Treasuries after a former Federal

Reserve official said that three interest rate cuts remain

likely this year.

The 10-year was down 6.4 basis points at 3.562%,

after approaching on Monday the top of its range for the past

few months.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
MORNING BID EUROPE-Deal after dinner as Trump signs end to shutdown
MORNING BID EUROPE-Deal after dinner as Trump signs end to shutdown
Nov 12, 2025
A look at the day ahead in European and global markets from Tom Westbrook U.S. President Donald Trump signed a bill ending the longest U.S. government shutdown on record with a late-night ceremony at the Oval Office, following a planned dinner with Jamie Dimon and top Wall Street executives. It's unclear just how quickly full government services and operations will...
Yields on super-long-dated JGBs slip; auction sees moderately firm outcome
Yields on super-long-dated JGBs slip; auction sees moderately firm outcome
Nov 12, 2025
TOKYO, Nov 13 (Reuters) - Yields on Japan's super-long-dated bonds fell on Thursday, reversing the sell-off in the prior session, while the five-year bond auction saw moderately firm outcome. The 30-year JGBs fell 1.5 basis points (bps) to 3.175%. The 20-year JGB yield fell as much as 1 bp to 2.680%. The 40-year JGB yield fell as much as 2...
Morning Bid: Deal after dinner as Trump signs end to shutdown
Morning Bid: Deal after dinner as Trump signs end to shutdown
Nov 12, 2025
A look at the day ahead in European and global markets from Tom Westbrook U.S. President Donald Trump signed a bill ending the longest U.S. government shutdown on record with a late-night ceremony at the Oval Office, following a planned dinner with Jamie Dimon and top Wall Street executives. It's unclear just how quickly full government services and operations will...
ROI-Markets face down 2025's upheavals with puzzling ease: Mike Dolan
ROI-Markets face down 2025's upheavals with puzzling ease: Mike Dolan
Nov 12, 2025
LONDON, Nov 13 (Reuters) - A turbulent 2025 has been remarkable as much for what didn't break as for what did. Financial markets and the wider global economy are looking to end the year in a fairly serene state despite Washington's bid to rewrite the global economic rulebook. The market suffered a relatively brief heart attack following President Donald Trump's...
Copyright 2023-2026 - www.financetom.com All Rights Reserved