News

Canadian Dollar Hits 4-week Low
USDCAD increased to a 4-week high of 1.2145
Published on 2021-06-11

Canadian Dollar Hovers Close to 2018 Levels
The Canadian dollar held around 1.21 against the greenback in June, close to 2018 levels, following the Bank of Canada’s decision to leave interest rates and the pace of the quantitative easing program unchanged. Policymakers noted there still was excess capacity in the Canadian economy and that the recovery continued to require extraordinary support from monetary policies. The Canadian central bank was the first among advanced economies to slow the pace weekly of government bond purchases, now traders expect the next taper to come at the next monetary policy meeting on July 14th. Also, oil prices, one of Canada’s major exports, rose to $70.5 per barrel amid signs of strong fuel demand in western economies.
Published on 2021-06-09

Canadian Dollar Weakens to 1-Week Low
The Canadian dollar weakened to an over 1-week low of 1.21 per USD early in June, amid a general greenback strength, as investors increasingly bet the Fed will start tapering sooner rather than later. Still, the loonie remained close to 2017-levels as oil prices, one of Canada’s major exports, hovered around $69 per barrel, its highest level since October 2018, on hopes the black gold market will tighten in the near-term, as suppliers kept disciplined output curbs and demand is expected to surge in the coming months.
Published on 2021-06-03

Canadian Dollar Strengthens to Near 6-Year High
The Canadian dollar climbed towards 1.20 against the greenback in the first week of June, a level not seen since May of 2015, bolstered by upbeat economic data and higher oil prices. The Canadian economy grew an annualized 5.6% in the first quarter of 2021, driven by housing investment and household spending, reflecting favorable mortgage rates, government transfers and stronger employment. On a quarterly basis, GDP advanced by 1.4%, the third straight quarter of expansion. Meantime, crude futures, one of Canada’s major exports, rose towards $69 per barrel, a level not seen since October of 2018, on the prediction by OPEC Plus that the oil market surplus will vanish by the end of June as crude stockpiles will decline sharply due to strong demand in the US, China and Europe.
Published on 2021-06-01

Canadian Dollar Holds at 6-Year High
The Canadian dollar held at a 6-year high of 1.21 per USD in the fourth week of May and is set to end the month 2.7% higher, benefitting from firmer commodity prices and positive economic health indicators. Earlier in the month, retail sales in Canada advanced 3.6% mom, above market expectations of a 2.3% growth, led by sales in building materials & garden equipment and supplies dealers. Also, the labor market added 351,300 jobs in April, the third straight month of increases. Oil prices, one of Canada’s major exports, firmed above $64 per barrel amid a potential setback in the revival of the Iranian nuclear deal and recovery prospects of demand for fuel.
Published on 2021-05-24

Canadian Dollar Hits 6-year High
USDCAD decreased to a 6-year low of 1.2049
Published on 2021-05-18

Canadian Dollar Consolidates 6-Year High
The Canadian dollar held around a 6-year high of 1.21 per USD in the third week of May, supported by a general dollar weakness and firmer commodity prices. Meantime, the Bank of Canada expressed concern about the loonie’s rise hurting exports but soaring demand for commodities and an imminent rebound in consumer spending are seen limiting the impact. On the data front, consumer prices in Canada rose 3.4% in April, slightly faster than forecasts, largely due to baseline effects. Looking ahead, a ramp-up in global vaccination efforts and a strong economic recovery could push the loonie higher, while the Canadian central bank is expected to keep its current guidance on interest rate hikes starting in the second half of 2022.
Published on 2021-05-17

Canadian Dollar Touches 6-Year High
The Canadian dollar touched a 6-year high of 1.21 per USD in the second week of May, amid a general dollar weakness and higher oil prices. Crude futures, one of Canada’s major exports, rose above $65 per barrel after a cyber attack forced the shutdown of fuel supply pipelines in the US. Also the loonie has also been taking advantage from a more hawkish Bank of Canada, in comparison to the American Fed. Still, gains were limited by a weaker-than-expected labor market data released earlier this month. The Canadian jobless rate rose to 8.1 percent in April, above the expected 7.8 percent, as pandemic restrictions forced more people into temporary layoff and into job searching.
Published on 2021-05-10

Canadian Dollar at a 3-1/2-Year High
The Canadian dollar strengthened to 1.22 per USD in the first week of May, a level not seen since September 2017, ahead of labor market data from Canada that could offer clues on the central bank’s policy outlook, while the greenback lost ground against a broad array of currencies. Forecasts showed a loss of 175 thousand jobs in the Canadian economy, as restrictions were reimposed to curb the latest wave of the virus and reduce the number of patients in ICU beds. The loonie has also been taking advantage from a more hawkish Bank of Canada, in comparison to the American Fed. On the pandemic front, new infections stabilised in a plateau slightly below the peak of the latest wave, while ICU patients with COVID-19 have started to decrease in Ontario after admissions reached a critical record of 900 beds.
Published on 2021-05-06

Canadian Dollar Holds at Over 3-Year High
The Canadian dollar held around an over 3-year high of 1.23 per USD at the beginning of May, buoyed by upbeat economic data. The manufacturing PMI in Canada eased to 57.8, from 58.5 in the prior month, pointing to the tenth consecutive month of expansion in factory activity. Meantime, the Canadian economy advanced 0.4% in February after lockdown measures began to ease across the nation, while flash estimates pointed to a 0.9% growth in March. The loonie has also been taking advantage from a more hawkish Bank of Canada, in comparison to the American Fed. Oil prices, one of Canada’s major exports, have firmed above $63 per barrel, as investors continued to weigh the impact of soaring COVID-19 infections in India and prospects of global economic recovery.
Published on 2021-05-03

Canadian Dollar Hits 3-Year High
The Canadian dollar strengthened to its highest level in three years against the USD at the end of April, hovering around $1.23, on a broader risk appetite as investors cheered strong earnings momentum while oil climbed to its highest level in more than a month. The outlook for the Canadian dollar has improved on the back of a hawkish tone from the Bank of Canada, which reduced the pace of its purchases of government debt amid an improved economic outlook due to the successful vaccine rollout.
Published on 2021-04-28

Canadian Dollar Rises to 6-week High
The Canadian dollar touched a 6-week high of 1.24 per USD in the last week of April, close to 2018 levels, amid a general dollar weakness. Traders expect the Fed will maintain a more dovish stance at a policy meeting this week, contrasting with Bank of Canada’s decision last week. The Canadian central bank said weekly net purchases of Canadian bonds would be adjusted to a target of C$3 billion from C$4 billion, while it signalled possible hikes in interest rates in 2022. Additionally, the bank upwardly revised forecasts for 2021 GDP growth to 6.5%, from a prior 4% and left the key interest rate unchanged at 0.25%, in line with expectations. Gains were limited by falling oil prices, one of Canada’s major exports, dragged down by concerns over surging cases worldwide.
Published on 2021-04-26

Canadian Dollar at Over 1-Month High
The Canadian dollar gained some ground to trade below 1.25 against the US counterpart on Friday, around levels not seen in over a month, underpinned by a jump in factory sales and a broader dollar weakness. Canadian factory sales jumped 3.5% over a month earlier in March, the fastest expansion since July 2020, bolstered by the transportation equipment and the petroleum and coal industries. Earlier in the week, traders welcomed a more hawkish stance from the Canadian central bank, as policymakers said weekly net purchases of Canadian bonds will be adjusted to a target of C$3 billion from C$4 billion and upwardly revised forecasts for 2021 GDP growth to 6.5%, from a prior 4%. At the same time, Bank of Canada left the key overnight rate unchanged at 0.25%, in line with expectations. Oil prices, one of Canada’s major exports, rose above $62, as PMI data pointed to a recovery in economic activity in Europe and in the US. For the week, the loonie is set to gain 0.2%
Published on 2021-04-23

Canadian Dollar Consolidates Gains
The Canadian dollar hovered at a one-month high of 1.25 per USD on Thursday, following the biggest single-day spike since June 2020 in the previous session, after the Bank of Canada decided to reduce the pace of its purchases of government debt. The Canadian central bank left the key overnight rate unchanged at 0.25% on April 21st 2021, in line with expectations, and said weekly net purchases of Canadian bonds will be adjusted to a target of C$3 billion from C$4 billion. The abrupt market movement signalled that investors welcomed a more hawkish tone from the central bank, given such an improved economic outlook due to the successful vaccine rollout. However, policymakers noted that there is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support.
Published on 2021-04-22

Canadian Dollar Records Best Single-Day Gain Since June
The Canadian dollar strengthened to a one-month high of 1.25 against its US counterpart on Wednesday, its biggest single-day spike since June 2020, in reaction to the Bank of Canada’s decision to reduce the pace of its purchases of government debt. The Bank of Canada left the key overnight rate unchanged at 0.25% on April 21st 2021, in line with expectations, and said weekly net purchases of Canadian bonds will be adjusted to a target of C$3 billion from C$4 billion. The abrupt market movement signalled that investors welcomed a more hawkish tone from the central bank, given such an improved economic outlook due to the successful vaccine rollout. However, policymakers noted that there is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support.
Published on 2021-04-21

Canadian Dollar Holds Near 2018 Levels
The Canadian dollar held at 1.25 per USD in the fourth week of April, close to 2018 levels, as traders welcomed the Bank of Canada monetary policy decision, against a backdrop of COVID-19 infections and lower oil prices. As expected, the central bank reduced weekly government bond purchases to C$3 billion from C$4 billion, starting April 26th. Additionally, the Bank’s GDP growth forecasts were revised higher for 2021 (6.5% from a prior 4%) but were lowered for 2022 (3.7% from 4.8%). Finally, policymakers left the benchmark interest rate unchanged at 0.25%, as the annual inflation rate in Canada rose to a 13-month high of 2.2% in March of 2021 from 1.1% in February, slightly missing market expectations of a 2.3% increase.
Published on 2021-04-21

Canadian Dollar Hits 6-Week Low
The Canadian dollar depreciated to its lowest in six weeks against its US counterpart on Wednesday before paring losses and consolidating around $1.25 in reaction to the Bank of Canada’s decision to reduce the pace of its purchases of government debt. The Bank of Canada left the key overnight rate unchanged at 0.25% on April 21st 2021, in line with expectations, and said weekly net purchases of Government of Canada bonds will be adjusted to a target of C$3 billion from C$4 billion. The abrupt market movement signalled that investors welcomed a more hawkish tone from the central bank, given such an improved economic outlook due to the successful vaccine rollout. However, policymakers noted that there is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support.
Published on 2021-04-21

Canadian Dollar Holds at 1.25 per USD
The Canadian dollar held around 1.25 per USD in the fourth week of April, close to 2018 levels, as traders digested news of the federal budget released earlier in the week. The Canadian government forecasts a budget deficit of C$154.7 billion in the coming fiscal year, exceeding the official figure posted in the Fall Economic Statement by C$30 billion and almost half of the C$354.2 billion deficit for the year ended March 31st. The government is unveiling C$101.4 billion in new spending aiming to provide emergency support for the current pandemic wave and help relaunch the economy and with C$30 billion allocated for a national childcare program. Oil prices, one of Canada’s major exports, rose to almost $64 per barrel following recent upbeat economic data and 2021 global oil demand forecasts. Later in the week, investors await the central bank’s monetary policy decision.
Published on 2021-04-20

Canadian Dollar Holds at 1.25 per USD
The Canadian dollar held around 1.25 per USD in the fourth week of April, as traders weighed prospects of a global economic recovery with concerns over the pandemic. Oil prices, one of Canada’s major exports, held around $63 per barrel following recent upbeat economic data and 2021 global oil demand forecasts. Later in the week, traders await the central bank’s monetary policy decision and the federal government’s budget.
Published on 2021-04-19

Canadian Dollar Hits 4-week High
USDCAD decreased to a 4-week low of 1.2477
Published on 2021-04-19