Analysis: Currencies

Bank of Canada expects to announce end of quantitative tightening in next few months

The Bank of Canada will soon announce the end of its quantitative tightening program, deputy governor Toni Gravelle said on Thursday, making it one of the first central banks globally to stop...

Bank of Canada to cut rates on Jan. 29, cautious over potential US tariff impact

The Bank of Canada will cut interest rates by 25 basis points to 3.00% on Jan. 29, according to a Reuters poll of economists, but many were not confident about the outlook beyond that given...

US weekly jobless claims increase; labor market conditions still healthy

The number of Americans filing new applications for unemployment benefits increased more than expected last week, but remained at levels consistent with a healthy labor market. Initial...

Dollar rules as investors eye Trump's economic policies

U.S. President-elect Donald Trump's imminent return to the White House and fading hopes for aggressive interest rate cuts have driven the dollar to multi-year highs, and investors see this strength...

US inflation relief dents dollar, yen gains ahead of BOJ

The dollar slipped on Thursday to stand just off recent peaks as cooling U.S. inflation data knocked down bond yields, while the yen hit a one-month high on rising bets on a rate hike in Japan. ...

Canadian home sales fall in December; up 10% in fourth quarter

Canadian home sales took a breather in December but were still 10% higher in the fourth quarter compared to the third quarter as the Bank of Canada cut borrowing costs, data from the Canadian Real...

US consumer prices rise slightly above expectations in December

U.S. consumer prices increased slightly more than expected in December amid higher costs for energy goods, pointing to still elevated inflation that aligns with the Federal Reserve's projections for...

US 30-year mortgage rate tops 7%, highest since May 2024

The interest rate for the most popular U.S. home loan rose last week to an eight-month high of 7.09%, extending an upward trend that's squeezing would-be homebuyers already facing rising house prices...

Japan likely to miss primary budget surplus target for FY2025, sources say

Japan is likely to miss achieving its goal of running a primary budget surplus by the next fiscal year, according to three sources with knowledge of fresh fiscal estimates, as the minority government...

Japanese investors exit foreign assets for third straight month in Dec

Japanese investors net sold foreign stocks and bonds for a third straight month in December, wary of rising U.S. bond yields, while some also booked profits amid sharp fluctuations in the yen. ...

Currencies: Two rooms, two atmospheres

While the rise in bond yields in the United States favors the dollar, the parallel rise in the United Kingdom is weighing on sterling. The cause is a struggling economy, which is weighing on the...

Robust US economy may not need Trump's big reforms

U.S. President-elect Donald Trump campaigned on promises of aggressive import tariffs, strict immigration curbs, deregulation and smaller government, but the economy he inherits next week may be...

China steps up policy measures to defend fragile yuan

China stepped up its policy measures on Monday to defend a weakening yuan by relaxing rules to allow more offshore borrowing and sending verbal warnings as the Chinese currency hovered around 16-month...

Canada's economy adds 90,900 jobs in December, jobless rate edges down

Canada's economy gained a net 90,900 jobs in December, largely in full-time work, and the jobless rate edged down to 6.7%, Statistics Canada data showed on Friday. Market reaction:...

Canada gains more jobs than forecast in December, jobless rate takes surprise dip

Canada's economy added nearly quadruple the number of jobs forecasted for December and the unemployment rate surprisingly ticked down to 6.7%, data showed on Friday, giving the central bank breathing...

Futures drop on caution ahead of key payrolls data

U.S. stock index futures slipped on Friday ahead of a crucial labor market report, at a time when concerns around inflation and the incoming Trump administration's policies have clouded the Federal...

Global money market funds draw huge inflows on caution over potential tariffs

Investors piled into global money market funds in the week through Jan. 8, spurred by concerns over potential tariff increases with the upcoming change in the U.S. administration and caution ahead of...

Fed's Schmid says central bank 'near' neutral interest rate level

Kansas City Federal Reserve President Jeff Schmid signaled on Thursday a reluctance to cut interest rates again as the U.S. central bank comes into the new year facing a resilient economy and...

US 30-year fixed-rate mortgage rate hovers just under 7%

U.S. mortgage rates increased to a fresh six-month high this week, a trend that together with elevated house prices could further squeeze potential buyers from the market. The average...