The Canadian dollar weakened to \u2060a near \u200bfive-week low against its U.S. counterpart on Tuesday as domestic data showed that inflation accelerated less than expected in April and the greenback posted broad-based gains.<\/p>\n
The loonie was trading 0.1% lower \u200bat 1.3750 per U.S. dollar, or 72.23 \u200cU.S. cents, after touching its weakest intraday level since April 15 at 1.3773.<\/p>\n
Canada\u2019s consumer price index increased at an annual rate of 2.8% in April, up from 2.4% in March, driven largely by a surge in \u200cgasoline \u200bprices after the Iran \u200cwar pushed global oil prices sharply higher.<\/p>\n
Analysts had forecast 3.1% \u200bfor the headline rate, while measures of underlying \u2060price pressures, closely watched by the Bank of Canada, \u2060eased.<\/p>\n
\u201cHaving had nightmares about another round of persistently high inflation, Canadian monetary policymakers \u200bcan now rest easier,\u201d Royce Mendes, head of macro strategy at Desjardins, said in a note. \u201cWhile rate cuts are not yet on the table, market-implied pricing for two rate hikes seems misplaced.\u201d<\/p>\n
The swap market was pricing in 50 basis \u2060points of tightening this year by the Canadian central bank, down from 54 basis points before the data. <\/p>\n
The U.S. dollar rose against a basket of major currencies as investors focused on a possible hawkish shift by the Federal Reserve to curb energy-driven inflation, \u2060while uncertainty over a potential peace deal \u200bin the Middle East also weighed on sentiment.<\/p>\n
The price of oil, one \u2060of Canada\u2019s major exports, was barely changed at about $108.65 a barrel, holding near the \u200ctop of its range since the start of May.<\/p>\n
Canadian government bond yields were \u200bmixed across a steeper curve. The 10-year was up 2 basis points at 3.713%, after earlier touching its highest level since May 2024 at 3.744%.<\/p>\n
A U.S.-dollar-denominated global bond was \u200blaunched by Canada\u2019s government, with pricing to be finalized on Wednesday.<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian dollar weakened to \u2060a near \u200bfive-week low against its U.S. counterpart on Tuesday as domestic data…\n","protected":false},"author":2,"featured_media":452045,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[246,229,247,220,218,248,114,245,217,236,237,232,219,216,184,243,242,235,227,259,221,222,234,85,46,230,231,224,249,225,254,255,257,252,256,250,253,223,240,241,238,239,251,228,125,244,233,226,126,258],"class_list":["post-452044","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-il","tag-israel","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/452044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=452044"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/452044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/452045"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=452044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=452044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=452044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}