USDCAD USD/CAD
- 1.37455
- +0.00151+0.11%
USD/CAD News
Why is the Federal Reserve still dragging its feet when the global market is eagerly awaiting an interest rate cut?
The Federal Reserve is waiting for more data to show that inflation is steadily decreasing, but excessive delays may lead to economic decline. Analysts believe that if the Federal Reserve continues to hold steady in July, a rate cut in September will be a "done deal".
HSBC is expected to cut interest rates by 25 basis points this week, and the US and Canada are expected to break through 1.3750 and reach 1.3900!
In the survey from July 16th to 19th, nearly three-quarters of the surveyed economists expected the Bank of Canada to cut interest rates by 25 basis points on Wednesday this week. The surveyed economists also predict that the Bank of Canada will pause its easing cycle at the September meeting, and then resume interest rate cuts in October and December. Forex analyst Saqib Iqbal pointed out that if the USD/CAD breaks through the 1.3600 support and 1.3750 resistance range, it will return to the key level of 1.3900.
Sentiment On The USD Fluctuates Amid Political Uncertainties
Recent developments in financial markets have significantly impacted the outlook for the USD.
President Biden Dropping Out Unlikely to Materially Shift Markets -- Market Talk
In the near term, President Biden's not seeking re-election and endorsing Vice President Kamala Harris is unlikely to shift markets materially, says Piers Bolger, CIO at Infinity Asset Management.
"Rate cut trade" and "Trump trade" led the entire market, small-cap stocks rose strongly and csi commodity equity index fell across the board. | Overseas major asset weekly report
The U.S. stock market continues to witness a "big shift" in the market, as investors accelerate their exit from large technology stocks. The "Trump trade" has raised concerns about inflation and pushed up the yield on U.S. long-term bonds, putting pressure on the dollar, and most commodity prices have fallen.
Williams of the US Federal Reserve: Long-term economic trends in the USA support maintaining low neutral interest rates.
Federal Reserve Bank of New York President Williams pointed out that the long-term trend of the neutral interest rate level decreasing before the outbreak of the epidemic still exists.
Is Trump's policy unfavorable to the U.S. dollar? In fact, the weakening of the dollar is imminent.
Analysis believes that one of Trump's most potentially influential policies is promoting exports by devaluing the US dollar. However, even before Trump took office, the US dollar had already been slated to weaken in the coming months and years. This is because there is no sign of relief for the US fiscal deficit, coupled with the imminent interest rate cut by the Federal Reserve, which will produce inflation that will cause the US dollar to depreciate.
Canada Producer Prices Flat in June, Raw Material Costs Slide
Excluding energy products, producer prices edged up 0.1% on-month, the data agency said Friday.
Economists lower US inflation expectations, is the timing of Fed rate cuts becoming more mature?
Economists have lowered their inflation expectations for the first half of 2025 in the USA and expect a slight uptick in unemployment, which they believe will prompt the Federal Reserve to begin cutting interest rates.
Microsoft Issue Widens, Stocks Weaken and Dollar Shines
US President Biden gets under further pressure as the election campaign continues.
USD/JPY Surges, US Treasury Yields Rise, Stocks Slump
The US Dollar surged against the Japanese Yen despite talk of suspected intervention by Japanese officials. At the close of trade in New York, the USD/JPY pair was up at 157.30 from 156.20 yesterday.
Another important leading indicator has been triggered! How far is the USA from recession?
The current unemployment rate is only a step away from triggering the Sarn Rule, but it has triggered another recession indicator, the Dudle's Rule.
USD/CAD Flat Lines Around 1.3700, Looks to Canadian Retail Sales/Fedspeak for Some Impetus
The USD/CAD pair seesaws between tepid gains/minor losses during the Asian session on Friday and consolidates its recent recovery gains from sub-1.3600 levels, or a three-month low touched last week.
Fed's Daly: Inflation target not yet achieved, job market at turning point.
San Francisco Fed Chair Daly said that some recent inflation data was "very good," but that the Fed has yet to achieve price stability.
Labor market becomes the latest focus. The Fed may lower interest rates in September.
Federal Reserve officials are shifting their focus from inflation to the labor market.
Fed's Powell: May need to cut rates quickly to avoid further deterioration in the labor market.
Goolsby said that the central bank may need to lower borrowing costs as soon as possible to avoid further deterioration of the labor market, which has been cooling down in recent months.
The issuer of the loan is waiting for the Federal Reserve to cut interest rates.
Leveraged loan issuers are taking advantage of strong investor demand to push for clauses to lower future loan costs and provide a buffer against the Fed's high interest rates. They are increasingly requesting the addition of so-called rate-reduction provisions in loans that can lower their rates by typically a quarter of a percentage point if they hit certain targets, which usually include initial public offerings, credit rating upgrades, or reduced debt burdens. According to data, 14 leveraged loan deals with rate-reduction provisions priced in June, the most this year and the largest amount since January (1).
Canadian Dollar Gives a Mixed Thursday Performance
The Canadian Dollar (CAD) recovered some ground in mixed trading on Thursday but still shed weight against the Greenback, the market’s best-performing currency of the day.
US Dollar Rebounds Despite Concerns Over Labor Market, Rate Cut Expectations Steady
On Thursday, the US Dollar measured by the DXY index experienced a rebound, closing in on the 104.00 mark, despite concerns over the labor market.
Canada Unemployment Rate Expected To Peak at 6.6% -- Market Talk
CIBC Capital Markets revises its economic forecast for Canada, with the most notable change being an uptick in the unemployment rate.