📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Canadian Dollar Weakens On Expectations For More Rate Cuts

Published 2024-06-14, 11:27 a/m
© Reuters.  Canadian Dollar Weakens On Expectations For More Rate Cuts

Baystreet.ca - The Canadian dollar is slumping against its U.S. counterpart as markets anticipate further interest rate cuts from the Bank of Canada this year.The loonie is trading 0.2% lower at 72.73 U.S. as the American greenback strengthens after the U.S. Federal Reserve on June 12 declined to lower interest rates and signalled that there’s likely to be only one rate cut in 2024.In contrast, the Bank of Canada on June 5 lowered interest rates by 25 basis points, with central bank officials saying more rate reductions are likely in coming months.

Canada is the first G7 country to lower interest rates since the onset of the Covid-19 pandemic in 2020.In a speech delivered on June 13, Bank of Canada Deputy Governor Sharon Kozicki said that further interest rate cuts are likely this year if inflation continues to decline. Futures traders are placing 55% odds of an interest rate cut at the Bank of Canada's next policy meeting scheduled for July 24.

Declining oil prices are also weighing on the Canadian dollar as crude is one of Canada's major exports.Currently, West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading at $79.08 U.S. per barrel, down from more than $85 U.S. at the start of the year.

This content was originally published on Baystreet.ca

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.