Canadian dollar holds near five-month low as inflation data weighs

strengthened against its U.S. counterpart on Wednesday, but the currency was holding near a five-month low after domestic inflation data that supported bets for interest rate cuts and as Canada’s budget projected increased spending.

“Yesterday’s softer-than-expected inflation report highlighted the country’s growing underperformance relative to the United States,” Karl Schamotta, chief market strategist at Corpay, said in a note. Money markets expect the Canadian central bank to cut its benchmark interest rate by 60 basis points in 2024, compared to 44 basis points of easing expected by the Federal Reserve.

“The package looks unlikely to pull Canada out of its productivity malaise, but put together with the billions in new spending initiatives announced by the provinces in recent weeks could deliver a ‘fiscal impulse’ ... that is slightly more positive than the Bank of Canada’s last set of projections,” Schamotta said.

Canadian Dollar Dollar Exchange Value Loonie Nopop

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Civil War director on how economics, the loonie play a role in the filmCivil War director and writer Alex Garland said the economic hardships people face are among the inspirations for the upcoming blockbuster film.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Portfolio manager says Loonie could fall to half of greenback's valueOne portfolio manager says that the Loonie could fall to 50 cents U.S. over the longer term if Canada doesn’t fix its issues around inflation and affordability.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Bullish bet on the loonie a ‘core trade’ for Citi’s FX strategistDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Source: globebusiness - 🏆 31. / 66 Read more »

The loonie isn’t following oil prices any longerA roundup of investment ideas for active investors
Source: globebusiness - 🏆 31. / 66 Read more »

Canadian dollar holds near 3-month low as investors eye sticky U.S. inflationLoonie at 74.21 U.S. cents
Source: globeandmail - 🏆 5. / 92 Read more »

Canadian dollar hits three-month low as CPI surprise lifts rate cut betsLoonie at 73.53 U.S. cents
Source: globebusiness - 🏆 31. / 66 Read more »