Author: Robert Jessi

The dollar has weakened as expected following the Democratic sweep, but relative are keeping the bears on a short leash. Takeaways • The dollar has weakened as expected following the Democratic sweep, but relative interest rates are keeping the bears on a short leash. • is back above $4,140 as collapsing oil prices and falling yields reverse the unusual relationship that dominated bullion trading during the Iran war. • A December Fed hike remains heavily priced, and resilient US employment indicators offer little encouragement for a larger dollar decline. • Europe’s inflation problem and Mexico’s shrinking carry advantage show why…

Image © Adobe ImagesThe Canadian dollar is cheap on long-run valuation measures, and it should start to close that discount if a revival in Canadian investment and narrower US rate differentials take hold.The Canadian dollar is deeply undervalued against the US dollar on long-run measures, says Desjardins, the Quebec-based financial cooperative.”But cheap currencies can stay cheap for a long time. As any value investor will tell you, the multiple is usually low for a reason,” say Jimmy Jean, Vice-President, Chief Economist and Strategist, and Mirza Shaheryar Baig, Foreign Exchange Strategist, at Desjardins.Investors call that risk a value trap: an asset…

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our recent policy announcement and the Bank of Canada’s Monetary Policy Report. Last week, we raised the policy interest rate by 25 basis points, bringing it to 2.5%. This was the first interest rate increase since July 2023. We also published our outlook for the Canadian economy. In raising our policy rate, we outlined two important economic developments since our July Report. First, the outlook for inflation has deteriorated. With the war in the Middle East persisting, global oil prices have increased and are expected to remain…

USD/CAD loses ground for the second successive day, trading around 1.3950 during Asian hours on Thursday. The pair depreciates as the US Dollar USD) faced heavy selling pressure after a Democratic sweep in the midterm elections resulted in control of both houses of Congress, raising concerns over potential political gridlock in Washington. Additionally, market expectations of an end to the Middle East conflict following the election outcome triggered a sharp drop in oil prices, adding further pressure on the Greenback.However, the US Dollar’s decline may remain limited as the resilient domestic economic data reinforced Federal Reserve (Fed) rate hike odds.…

Fortunately, ETFs, like stocks, are supremely liquid. If you don’t make the best selection at first, you can sell your holdings and replace them with more suitable ones in a matter of minutes. When it comes to core portfolio holdings—the basic building blocks of a portfolio, such as Canadian, U.S. and international stocks, and Canadian bonds—there are plenty of ETFs to choose from. You can also opt for an asset allocation ETF that combines them all in one fund. These all-in-one ETFs can use different approaches, from passive index investing to active management, such as the approach used by Fidelity’s…

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FILE PHOTO: Bank of Canada Governor Tiff Macklem takes part in a press conference, after cutting key interest rate, in Ottawa, Ontario, Canada September 17, 2025. REUTERS/Blair Gable/File Photo Blair Gable Reuters OTTAWA, Nov 3 (Reuters) – The Canadian government’s current fiscal policy is not making it harder for the Bank of Canada to fight inflation, Governor Tiff Macklem told the House of Commons finance committee on Tuesday.Macklem said the bank would only comment on government policy if it had become unsustainable or if it was making it harder to get inflation back to the bank’s 2% target.”In the current…

The EUR/JPY cross trades in negative territory around 177.90 during the early European session on Thursday. The Japanese Yen (JPY) strengthens against the Euro (EUR) after minutes of the Bank of Japan’s (BoJ) September meeting reinforced expectations for further interest ‌rate hikes.According to the minutes of the September meeting released on Thursday, most of the BoJ policymakers agreed that further interest rate increases would be appropriate as underlying inflation approached the central bank’s 2% target.One board member indicated that there may be room to accelerate interest rate increases as the central bank assessed the effects of Middle East developments, growing…

Gold rallies further to near $4,135 in the Asian trade on Thursday, the highest level seen in almost two weeks. The precious metal continues to attract bids as the victory of United States (US) Democrats in both the House and the Senate has weighed heavily on US bond yields and the US Dollar (USD).ING argued that Democrat clean sweep would likely “lead to gridlock on the debt ceiling, a prolonged government shutdown next year”. The bank further warned that “fears of tougher regulation could weigh on Artificial Intelligence (AI) stocks (we’ve recently seen how that can hit the greenback)”.What is…

USD/CAD Price Forecast: Weak GDP Challenges Further BoC Hike Bets The Canadian Dollar is holding up despite disappointing growth, leaving JP Morgan cautious about further gains supported by Bank of Canada rate rises. The Canadian Dollar edged higher on Monday, with the US Dollar to Canadian-Dollar exchange rate trading at 1.3955, down 0.12% on the day. Latest — Exchange Rates: Dollar to Canadian Dollar (USD/CAD): 1.39619 (-0.16%) Pound to Canadian Dollar (GBP/CAD): 1.873572 (-0.09%) Euro to Canadian Dollar (EUR/CAD): 1.562563 (-0.16%) Its resilience has become a complication for JPMorgan’s currency desk, which sees weaker growth as a reason to question…