The US Dollar performed well against major currencies, with the British Pound, Euro, and Canadian Dollar underperforming, while the Chinese Yuan and Australian Dollar fared better; the Federal Reserve's indication of a higher terminal rate and potential further borrowing cost increases contributed to the market sentiment, leading to lower US equity markets; upcoming economic data includes consumer confidence, inflation gauges from key European countries, and manufacturing PMI gauges from China.
The US dollar dropped to a two-week low against the euro and other currencies after data revealed lower than expected private payroll growth in August, leading to speculation that the Federal Reserve will halt interest rate increases.
The Canadian dollar strengthens slightly against the US dollar in August despite concerns about China's economy and a decline in commodity-linked currencies.
Canada's economy unexpectedly contracted in the second quarter, raising concerns of a possible recession, as declines in housing investment and slower exports and household spending impacted growth. This is likely to lead the central bank to hold interest rates steady.
The Canadian dollar weakened against the US dollar after data revealed that the country's economy unexpectedly contracted in the second quarter, reducing the likelihood of an interest rate hike from the Bank of Canada.
The U.S. dollar declined due to weaknesses in economic growth, leading to a boost in the performance of gold and U.S. equities, while other global assets experienced mixed price movements throughout the week.
The US dollar edged lower as US markets were closed for a holiday, and investors considered US jobs data indicating signs of cooling, leading to speculation that the Federal Reserve may be at the end of its monetary tightening cycle.
Analysts have lowered their short-term forecasts for the Canadian dollar due to China's weakening economy and the widening yield gap between the US and Canada, but still project the currency to strengthen in the long term.
The Canadian dollar strengthened against the US dollar as stronger-than-expected jobs data raised the possibility of another interest rate hike by the Bank of Canada.
The U.S. dollar index had its eighth consecutive week of gains, while global stock indexes ended slightly higher before key U.S. inflation data, with concerns that high interest rates may remain in place for longer than expected despite the Federal Reserve likely keeping rates unchanged this month. Longer-dated Treasury yields eased, Apple shares rose slightly after two days of losses, and oil prices increased.
The unemployment rate in Canada remained steady at 5.5% in August, while employment saw a net increase of 39,900 and average hourly wages rose by 4.9%. The Canadian dollar experienced a bearish reaction to the jobs report, with the USD/CAD pair losing 0.5% on the day.
The US Dollar performed strongly against major currencies, with the Euro experiencing its 8th consecutive weekly loss and the Chinese Yuan performing poorly, while global market sentiment was negative and stock markets weakened. In the coming week, market focus will be on the US inflation report, UK employment and GDP data, Australian employment data, and the ECB rate decision.
The euro has been continuously decreasing in value against the dollar for the eighth consecutive week, reflecting the economic challenges faced by Europe, including high inflation and the specter of recession, while the United States has better control over inflation and a stronger labor market, leading to a widening gap between the euro and the dollar.
Canada's inflation rate rose to 4.0% in August, driven by higher gasoline prices, while the Trans Mountain oil pipeline expansion is expected to disrupt oil flow to the US, potentially increasing prices, according to Statistics Canada. US Treasury Secretary Janet Yellen believes the US economy can withstand near-term risks such as strikes, government shutdowns, student loan payments, and spillovers from China's economic woes, stating evidence of a healthy labor market and consumer spending. Rent is rising faster in Brampton than in any other Canadian city, leading to financial difficulties for renters.
Canada's annual inflation rate in August rose to 4.0% due to higher gasoline prices, potentially leading to further interest rate hikes by the central bank.
Summary: The US Dollar had mixed performance against major currencies, with the British Pound weakening and the New Zealand Dollar rallying; Wall Street took a hit after the Federal Reserve announcement, and the 10-year Treasury yield surged to its highest level since late 2007.
The USD/CAD pair strengthened on the back of a hawkish tone from the Fed on interest rates, robust US employment data, and higher US Treasury yields, while downbeat crude oil prices weighed on the Canadian Dollar.
The dollar weakened and global equities dipped as investors grappled with U.S. unemployment data suggesting a tight labor market and the Federal Reserve's commitment to higher interest rates, while European stocks rebounded from losses.
The Canadian Dollar is easing off pressure as Crude Oil prices soften and US data dominates the market, with inflation figures expected to determine chart direction for the rest of the week.
Canada's main stock index, the S&P/TSX composite index, fell 0.8% as U.S. inflation data caused long-term borrowing costs to rise, resulting in a pullback in bond yields and a decline in interest-rate sensitive sectors.
The U.S. dollar reached a one-week high against other currencies following the release of U.S. consumer prices data, which increased expectations for higher interest rates; safe-haven buying also contributed to the dollar's strength due to escalating Middle East conflict.
The Canadian dollar weakened against the US dollar as US bond yields rose after higher-than-expected US inflation data, making the US dollar more attractive to foreign investors and putting pressure on the loonie.
Canadian businesses and consumers are feeling the impact of higher interest rates, resulting in reduced spending and subdued sales, although inflation expectations remain high, posing a challenge for the Bank of Canada's upcoming interest-rate decision.
The Canadian dollar weakened against the US dollar as investors anticipate the Bank of Canada keeping interest rates unchanged following lower-than-expected inflation data.
Summary: The Canadian Dollar remained mostly steady against the US Dollar on Thursday, but later gained ground as the USD weakened following comments from Fed Chair Jerome Powell, while the release of Canadian economic data had minimal impact on the currency.
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