Analysis: Currencies

Bank of Canada reviewing extraordinary actions taken during pandemic

The Bank of Canada is reviewing the extraordinary actions it took during the pandemic to stimulate the economy, in an effort to be better prepared for a future crisis, a top executive said on...

TSX futures dip as investors digest US Fed's rate outlook

Futures tied to Canada's main stock index slipped on Thursday on weak commodity prices after the U.S. Federal Reserve projected only one interest-rate cut this year. S&P/TSX futures fell...

In new forecasts, Fed appears to bow out of the election cycle

The U.S. Federal Reserve may have just ducked out of the presidential campaign spotlight with a fresh set of forecasts showing no interest rate cuts are likely until after Election Day. ...

Fed meeting, benign inflation keep soft landing hopes alive

Soft landing hopes that have powered U.S. stocks this year received a boost following encouraging inflation data and a nod from the Federal Reserve at progress made in fighting consumer prices. ...

MORNING BID EUROPE-Data is king, Fed its servant

A look at the day ahead in European and global markets from Kevin Buckland The verdict from investors appears to be that benign U.S. inflation trumps the Fed's rate...

Asia stocks rally, bond yields fall as investors assess Fed outlook

Asian equities rallied on Thursday, while bond yields slid, as investors weighed cooling U.S. inflation against a more hawkish posture by the Federal Reserve. Japanese shares...

Bank of Canada head says can still diverge from Fed on rates

There is a limit to how far the Bank of Canada can diverge from the U.S. Federal Reserve when it comes to cutting rates but the Canadian bank is nowhere near that limit, Governor Tiff Macklem told a...

Fed seen on track to Sept rate cut after inflation data

Federal Reserve policymakers may feel more confident that inflation is back on a downward path after a U.S. government report showed consumer prices did not rise at all in May, potentially paving the...

MORNING BID AMERICAS-Can this rally fight the Fed?

A look at the day ahead in U.S. and global markets by markets correspondent Naomi Rovnick What a difference half a year makes. Traders started 2024 convinced that the U.S....

Fed expected to hold rates steady, project fewer cuts in 2024

The Federal Reserve is expected to leave interest rates unchanged on Wednesday, with new economic projections from the U.S. central bank's policymakers likely to show fewer rate cuts this year and...

Currency: The Euro isn't penalized by rate cuts, but by European elections

While the European Central Bank has lowered its main key rates, the euro will have to wait for the outcome of the European Parliament elections to take its toll.

Funds cool on dollar, cut longs to lowest since March: McGeever

Hedge funds and speculators continue to temper their optimism on the U.S. dollar, and are now holding the smallest net long position in the currency since March. The question now is...

Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever

ORLANDO, Florida -After two decades of the dollar's share of global foreign exchange reserves gradually eroding to less than 60%, economic, financial and geopolitical stars are aligning to halt that...

Canadian dollar outlook dims on expected interest rate divergence

The Canadian dollar is set to strengthen less than previously expected over the coming year if the Bank of Canada begins cutting interest rates ahead of the Federal Reserve and the U.S. election...

US dollar to weaken, but Fed rate cuts are required, say strategists

The dollar's relentless strength in the recent past will make way for minor weakness over the next 12 months, according to FX strategists in a Reuters poll, who generally agreed the dollar was...

MORNING BID EUROPE-Dazed dollar set for more macro jolts?

A look at the day ahead in European and global markets from Kevin Buckland The once invincible dollar was still reeling on Tuesday after more macro evidence that the U.S....

Currencies: New opportunity for the euro against Nordic currencies

Let's put aside the endless and recurring questions about the timing of the first rate cuts to focus on a technical situation which we find interesting. The euro is back on technical support against...

Currencies: How much? Just a pound!

After looking at some particularly weak currencies , it was time to take a look at the other side of the fence. Among European currencies, sterling is doing particularly well, even against the euro....

Currencies: Back to the future

Two weeks ago, the focus of this weekly currency newsletter was on the BoJ's supposed intervention in the foreign exchange market to push down the yen. A look back at this episode and the central...