Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CANADA FX DEBT-C$ rallies 1 pct as Fed minutes, Trump pressure greenback

Published 2017-08-16, 04:55 p/m
Updated 2017-08-16, 05:00 p/m
© Reuters.  CANADA FX DEBT-C$ rallies 1 pct as Fed minutes, Trump pressure greenback

© Reuters. CANADA FX DEBT-C$ rallies 1 pct as Fed minutes, Trump pressure greenback

* Canadian dollar at C$1.2627, or 79.20 U.S. cents

* Bond prices higher across the yield curve

By Solarina Ho

TORONTO, Aug 16 (Reuters) - The Canadian dollar rebounded against its U.S. counterpart on Wednesday from a one-month low hit the day before, driven by a broad-based retreat in the U.S. dollar on the back of Federal Reserve concerns over inflation.

Investors were also following North American Free Trade Agreement renegotiation talks, which kicked off on Wednesday, but an overall dearth of domestic news meant the loonie took its cues elsewhere.

Minutes from the U.S. central bank's July meeting showed policy makers were increasingly worried about a recent streak of soft inflation readings, raising the possibility the Fed could hold off raising interest rates. outlook for interest rate hikes, while still pretty much on course, is causing a little bit of uncertainty to creep into the market," said Rahim Madhavji, President at KnightsbridgeFX.com.

"I think the U.S. dollar rally popped a while ago. We're going to see the USD/CAD oscillate around where we are."

At 4:00 p.m. ET (2000 GMT), the Canadian dollar CAD=D4 was trading at C$1.2627 to the greenback, or 79.20 U.S. cents, up 1 percent.

The currency traded in a range of C$1.2614 to C$1.2770.

On Tuesday, the loonie hit its lowest level since July 12 at C$1.2778, pressured by broader gains for the greenback as North Korea tensions eased and data showed a jump in U.S. retail sales.

The U.S. dollar fell to session lows against a number of currencies, extending earlier losses after the disbanding of

U.S. President Donald Trump's manufacturing council and strategic policy forum.

"There's a little bit of uncertainty with Trump: his ability to implement his agenda, the noise around it, how that may or may not impact the Fed," said Madhavji.

The loonie's rally came even as prices of oil, one of Canada's major exports, slumped more than 1.5 percent following data that suggested U.S. production was edging higher, stoking renewed worries about a global crude glut. investors sold a net C$923 million ($724.83 million) in Canadian securities in June after buying C$29.44 billion in securities in May, Statistics Canada said. It was the first monthly divestment since July 2015. government bond prices were higher across the yield curve, with the two-year CA2YT=RR price up 2 Canadian cents to yield 1.233 percent and the benchmark 10-year CA10YT=RR rising 31.5 Canadian cents to yield 1.871 percent.

Canada's closely watched inflation data for July is due on Friday. ECONCA

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.