These young female athletes died by suicide. They all had head injuries in common

on
0

Canadian Dollar Drops as Trump Ends Trade Talks with Canada

on




The Canadian dollar weakened significantly against the U.S. dollar on Friday after U.S. President Donald Trump abruptly announced the termination of trade talks with Canada. Trump made the announcement on Truth Social, citing Canada’s implementation of a digital services tax targeting U.S. technology firms. This unexpected move intensified uncertainty around the Canada-U.S. trade relationship, which is crucial as about 75 percent of Canadian exports go to the United States.


Market sentiment had already been negative following disappointing Canadian economic data and lower oil prices. Canada’s gross domestic product shrank by 0.1 percent in April compared to March, with goods-producing industries down 0.6 percent. The contraction was partly due to reduced vehicle manufacturing, as tariff concerns prompted producers to scale back. A preliminary estimate for May also pointed to a further 0.1 percent decline.


Erik Bregar, head of FX and precious metals risk management at Silver Gold Bull, noted that the Canadian dollar had been weakening throughout the morning, but Trump’s announcement accelerated its decline. The loonie dropped 0.6 percent to trade at 1.3720 per U.S. dollar, or 72.89 U.S. cents, after hitting an intraday low of 1.3758. Still, it remained slightly higher for the week, up 0.1 percent overall.


Doug Porter, chief economist at BMO Capital Markets, stated that continued economic weakness and soft job growth might lead the Bank of Canada to consider further interest rate cuts. Investors now estimate a 60 percent chance the central bank will maintain its current benchmark interest rate of 2.75 percent in July but expect a possible rate cut by September.


Meanwhile, the U.S. dollar strengthened against a basket of major currencies, and oil prices recorded a steep weekly decline. Canadian bond yields fell across a flatter curve, with the 10-year yield down 2.9 basis points at 3.311 percent.


See also: Trump cuts off US trade talks with Canada, shattering optimism over tariff deals


Comments

Post a Comment