Canadian Dollar Falls As Rate Cut Hopes Fade
The Canadian dollar weakened against its major counterparts in
the New York session on Tuesday, as traders lowered expectations
for interest rate cut in June following strong U.S. manufacturing
data.
Overnight data showed that U.S. manufacturing activity expanded
for the first time in 1-1/2 years in March, pouring cold water on
hopes for interest rate cuts in June.
Treasury yields moved sharply higher in reaction to the data on
Monday and are seeing further upside this morning, with the yield
on the benchmark ten-year note reaching a four-month high.
While CME Group's FedWatch Tool is currently still indicating
56.8 percent chance the Fed will cut rates by a quarter point in
June, that is down from 63.8 percent a week ago.
The highly anticipated U.S. jobs report due on Friday could
influence the Fed's decision on when to cut interest rates.
The loonie eased to 1.3583 against the greenback and 1.4623
against the euro, from an early high of 1.3556 and a 1-1/2-month
high of 1.4545, respectively. The currency may locate support
around 1.38 against the greenback and 1.48 against the euro.
The loonie touched 0.8848 against the aussie, setting a 5-day
low. The currency is likely to face support around the 0.90 region,
if it falls again.
The loonie eased against the yen and was trading at 111.63. This
may be compared to a previous 5-day low of 111.57. The currency is
seen finding support around the 108.00 level.
US Dollar vs CAD (FX:USDCAD)
FXチャート
から 4 2024 まで 5 2024
US Dollar vs CAD (FX:USDCAD)
FXチャート
から 5 2023 まで 5 2024