Weaker loonie may not deter Bank of Canada diverging from the Fed May 17, 2024 06:05AM

By Fergal Smith

TORONTO (Reuters) - The Bank of Canada would be willing to cut interest rates three times ahead of the Federal Reserve's first move before a declining currency threatens to endanger the inflation outlook, the median estimate of seven analysts in a straw poll showed.

A weaker Canadian dollar versus the greenback this year has sparked debate among investors about how much the BoC would be prepared to diverge from its U.S.... (continue reading...)

Dollar selling "looks exaggerated" - HSBC May 17, 2024 05:55AM - The U.S. dollar is on track for a hefty weekly fall on renewed dovish hopes for the Federal Reserve, but this selling “looks exaggerated”, according to HSBC.

At 05:25 ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded at 104.640, on course for a weekly loss of around 0.5%, as well as a monthly drop of 1.3%. 

The USD has suffered from a “double whammy” lately, according to analysts at... (continue reading...)

Dollar steadies, but on track for sharp weekly loss May 17, 2024 04:32AM - The U.S. dollar edged higher in European trade Friday, but was on track for a hefty weekly fall after cooling inflation and weak retail sales brought Federal Reserve rate cuts back into focus. 

At 04:10 ET (08:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher at 104.580, marginally above a five-week low just below 104 seen earlier this week.

Dollar steadies after hawkish Fed speak

The... (continue reading...)

Hedge funds play a weak Japanese yen May 17, 2024 03:11AM

By Nell Mackenzie

LONDON (Reuters) - Pressure on Japan to prop up a weak yen may have ebbed, but currency weakness remains a headache for Tokyo.

The yen is down 9.4% against the dollar so far this year, and looks set for a fourth year of declines. That's created a two-speed economy, with exports and tourism benefiting from a more competitive exchange rate while households and small businesses are squeezed by rising import prices.

... (continue reading...)
Asia FX weakens as dollar recovers amid waning rate cut cheer May 17, 2024 02:43AM Most Asian currencies retreated on Friday as the dollar recovered a measure of recent losses after a string of Federal Reserve officials warned that bets on interest rate cuts may be premature. 

While the greenback was still headed for some weekly losses, it was trading well above a one-month low hit on Thursday. U.S. Treasury yields also rebounded, pressuring risk-driven markets.

Regional factors also weighed on Asian currencies, as economic data from... (continue reading...)

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