NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

USD/CAD: Loonie Moderately Weaker as Hawkish Fed Bets Boost Greenback

Published 2022-11-03, 03:35 p/m
© Reuters.
USD/CAD
-
CAD/USD
-
CL
-

By Ketki Saxena 

Investing.com -- The Canadian dollar weakened against its US counterpart today, with the US dollar rallying broadly following hawkish comments from US Fed Chairman Jerome Powell, who reiterated the need to keep rates higher for longer. 

The Canadian dollar meanwhile was pressured by falling crude prices, but gained some strength from a rising trade balance, and hawkish remarks from Bank of Canada Governor Tiff Macklem yesterday at a Senate committee hearing. 

The US dollar, and Fed comments that it is premature to be thinking of a pivot US Initial Jobless Claims for the week ending on October 28 were lower than expected, even though the US economy continues to weaken. 

The Institute for Supply Management (ISM) showed the Services PMI was below forecasts, while Factory Orders on an MoM were in line with estimates.

The Canadian dollar meanwhile was pressure by sharp declines in crude prices on a stronger dollar, fears the Fed’s tightening would slow economic growth. In China, COVID-19 cases hit their highest level in two and a half months, leading health authorities to stick by its strict containment policy, raising worries of further demand destruction in the world’s top importer of crude.  

The Canadian dollar however gained some support from BoC Governor Tiff Mackem’s remarks yesterday before a Senate committee (a typical event after May and October policy announcements). Mr. Macklem noted that the Bank of Canada is not yet drawing to a close - although that time is nearing. 

The loonie also gained some support frm domestic Trade Balances for September, a surplus bolstered by crude oil and wheat exports. The surplus rose to C$1.1 billion, below estimates of C$1.2 billion,

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.