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USD:

Buy:

1.3427

/

Sell:

1.3882

-0.01%


-0.01%


EUR:

Buy:

1.449

/

Sell:

1.5011

-0.02%


-0.02%


GBP:

Buy:

1.694

/

Sell:

1.7497

-0.01%


-0.01%


JPY:

Buy:

0.00871795

/

Sell:

0.00929315

-0.12%


-0.12%


April 14th 2024, 5:04:15 am

(about a few seconds ago)

The Canadian dollar continues to weaken out

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North American equity markets went through a rough week after more economic data showed that the US economy is not hit hard and certain inflation reports are pointing to still-hot figures being higher than forecast. S&P 500 and Nasdaq dropped 2.94% and 3.89%, while a more defensive index of the Canadian market, S&P/TSX dropped 1.88% during the third week of February.

US interest rates are sitting at a record-high or 4.5% but forecasts show another 25% increase coming from the central bank in their next meeting. Although markets believed the central bank was leaning toward the end of the rate cycle, the latest inflation report of 6.4% annually and the producers' price index evaporated the hopes.

Meanwhile, in Canada, the Bank of Canada called an end to rate hikes but it is common knowledge that if the US Federal Reserve continues with its rate hikes, Canada has to follow. Otherwise, there will be more global capital flow into the US dollar that offers a higher risk-adjusted return and puts longer-term pressure on the Canadian dollar as seen in recent weeks.

The Canadian dollar continues to trend lower against USD going from 1.28 a year ago to 1.36 right now.