What started last week as a data and OPEC-driven rally has become something of a rout, with the Canadian dollar battering other currencies again on Monday following news that Canada and the United States, together with Mexico, have finally agreed a trade deal.
The Canadian dollar is soaring following news that Canada and the United States, together with Mexico, have agreed a trade deal.
“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st century: the United States-Mexico-Canada Agreement (USMCA),” US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said in a joint statement.
“USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class and create good, well-paying jobs . . . for the nearly half-billion people who call North America home,” the officials said.
In the markets, Monday morning’s gap-and-go put the loonie up 3 percent against the euro in as many days, up nearly 4 percent against the Swiss franc within the same period, and up by an average of 2 percent against the US and Australian dollar currencies. As far as three-day measures go, this is the fastest rate of Canadian dollar appreciation seen in recent years.
In terms of milestones, USD/CAD, the most important of all Canadian dollar exchange rates, struck a four-month low (Canadian dollar high) on Monday as it tumbled into the high C$1.27s. As recently as Thursday, it had been threatening C$1.31. As of writing, a pause in the decline, perhaps only temporary, had the pair trading at C$1.281.
With the mood buoyant, the safety-first Japanese yen fell to a ten-month low and crude oil—a product which Canada exports in great quantities—rallied to a three-month high.
The British pound was in high demand on Tuesday ahead of an important meeting between British PM Theresa May and EU officials, at which investors are hoping for a Brexit breakthrough.
19 Feb, 2019 by - Last updated:23 Feb, 2019
Those intending to pick up euros this week should consider heeding warnings offered by MUFG. The bank expects the euro to move towards cheaper levels in the coming days and it would therefore be unwise to pay rates offered on Monday.
18 Feb, 2019 by
The forecast is stormy with the embattled Australian dollar set to lose a further 7 per cent of its value and end the year buying only US66¢, analysts at HSBC have said. A decline into the mid-60s would have the Aussie trading at levels not seen in a decade.
15 Feb, 2019 by - Last updated:20 Feb, 2019
Chinese fintech giant Ant Financial has acquired British payments specialist WorldFirst for an undisclosed amount.
14 Feb, 2019 by - Last updated:21 Feb, 2019
The New Zealand dollar leapt on Wednesday in response to the latest remarks from the RBNZ, which said that interest rates in New Zealand would not be lowered this year or next, wrong-footing investors who had adjusted FX positions to account for lower rates.
13 Feb, 2019 by - Last updated:14 Feb, 2019