C$ slides even as Macklem links currency to rate outlook


Canadian dollar weakens 0.9% against greenback


Investors raise bets on 50-basis-point hike in October


2-year yield climbs above 4% for first time in 15 years

By Fergal Smith

TORONTO, Oct 6 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Thursday as the greenback notched broad-based gains and despite a signal by Bank of Canada Governor Tiff Macklem that the central bank would continue to hike interest rates aggressively.

The loonie CAD= was down 0.9% at 1.3740 to the greenback, or 72.78 U.S. cents, moving back in sight of last Friday's two-year low at 1.3838.

"It was predominantly a broad (U.S.) dollar move," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets.

"You read Macklem's speech and it's pretty hawkish. ... In particular, he pointed to the recent weakness in the Canadian dollar and tied it a little bit more than I thought he would to incoming policy decisions."

The loonie has weakened 8% against the U.S. dollar since the start of 2022. That's a better performance than other G10 currencies except for the Swiss franc CHF= , though most of that decline has come since mid-August.

Macklem said the currency's recent weakness will offset some easing of inflation pressures that could come from improving global supply chains and lower commodity prices and made clear the central bank will not yet be pivoting away from its current rapid pace of interest rate increases.

Money markets raised bets on a 50-basis-point hike at the BoC's next policy announcement on Oct. 26, pricing in a 70% chance of such a move versus roughly 50% before the governor's speech. 0#BOCWATCH

The U.S. dollar .DXY climbed against a basket of major currencies and Wall Street's main indexes fell as optimism faded that the Federal Reserve will go easy with its rapid tightening.

Canadian government bond yields rose across a more deeply inverted curve, with the 2-year CA2YT=RR moving above the 4% threshold for the first time since October 2007. It was up 14.7 basis points at 4.013%.
Reporting by Fergal Smith; Editing by Paul Simao and Jonathan Oatis

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。