Analysis: Currencies

Canada's GDP contracts in April, likely another decline in May

OTTAWA -Canada's economy contracted in April on a monthly basis, data showed on Friday, as sectors exposed to tariffs and uncertainty negated a boost from services. Gross domestic...

US consumer spending falls; tariff-related boost to inflation awaited

WASHINGTON -U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of the Trump administration's tariffs faded, while monthly...

Dollar question hovers over top central bankers meeting in Sintra

FRANKFURT -A million-dollar question will hang over the world's top central bankers when they meet in Sintra, Portugal, next week: Is the monetary system centred on the U.S. currency beginning to...

S&P 500, Nasdaq hit record closing highs amid trade negotiations, rate cut bets

NEW YORK -Wall Street extended its rally on Friday, sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify...

Dollar gains as Trump reignites trade concerns

NEW YORK -The dollar retraced earlier losses against the euro on Friday after U.S. President Donald Trump said the United States was ending trade talks with Canada and that he would consider bombing...

US demand for China-made goods ebbs on tariff worries; ocean shipping rates drop

LOS ANGELES -Rates for shipping cargo containers from China to the U.S. have dropped by more than half since earlier this month, as imports rebounded less than expected after the slump that followed...

Market bets on a more dovish Fed as Trump eyes Powell's replacement

NEW YORK -The gulf between where the Federal Reserve projects interest rates will be by the end of 2026 and the more aggressive cutting financial markets expect by then is partly due to the...

Fed rate cut in July? Inside the US central bank, few takers

President Donald Trump says that tame inflation means the Federal Reserve should already be reducing its policy rate, but inside the U.S. central bank the idea has little traction, with only two Fed...

US labor market softening as more people remain on unemployment rolls

WASHINGTON -The number of Americans filing new applications for jobless benefits fell last week, but work opportunities are becoming scarce as businesses remain hesitant to hire because of an...

Canada home prices to decline 2% as trade war hits homebuyer confidence 

BENGALURU -Canada home prices are set to decline 2% this year and stagnate in 2026, a significant downgrade from expectations of modest rises just three months ago, according to a Reuters poll of...

New home sales fall to seven-month low in May; supply increases

WASHINGTON -Sales of new U.S. single-family homes fell by the most in nearly three years in May as high mortgage rates and rising economic uncertainty sapped demand, lifting the supply of unsold...

JPMorgan sees tariff-induced US 'stagflationary' slowdown in 2025

NEW YORK -U.S. trade policies will likely slow down global economic growth and rekindle inflation in the United States, where there is a 40% probability of a recession in the second half of this...

Powell says Fed needs to manage against risk that tariff inflation proves persistent

WASHINGTON -The Trump administration's tariff plans may well just cause a one-time jump in prices, but the risk it could cause more persistent inflation is large enough for the central bank to be...

Fed's Williams sees slower growth, higher inflation this year on tariffs, uncertainty

ALBANY -Federal Reserve Bank of New York President John Williams expects slower growth and higher inflation this year due in large part to trade tariffs, in comments that suggested he is in no rush...

Instant View: Canada's annual inflation rate at 1.7% in May, unchanged from April

TORONTO -Canada's annual inflation rate in May was unchanged from the previous month at 1.7% as a drop in gasoline costs continued to keep the overall index stable while prices of shelter, food and...

Powell repeats rate cuts can wait as Fed studies tariff impacts

WASHINGTON -Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of...

Oil, rates and the dollar tumble

What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets After a tentative ceasefire was announced in the...

Exclusive-Fed should wait on rate cuts with price hikes expected, Bostic says

ATLANTA -The Federal Reserve need not cut interest rates with companies planning to raise prices later this year in response to higher import taxes and with the job market still stable, Atlanta Fed...

Currencies: Renewed interest

The US military attack on Iranian nuclear facilities has allowed the dollar to regain some ground against several G10 currencies. However, it is still struggling against the euro; however, there are...