USD / CAD – Canadian dollar awaiting Canada growth data

– European and many European markets closed for holidays.

– FX focus shifts to Fed after talk of debt ceiling deal.

– CAD best performing G-10 currency since Friday open.

USDCAD snapshot: open 1.3596-00, overnight range 1.3586-1.3617, close 1.3617, WTI $72.53, Gold $1946.01

The Canadian dollar came under pressure Friday after hotter-than-expected US PCE data fueled speculation the Fed would raise rates by 25 bps at its June 14 meeting.

That’s a U-turn from sentiment at the beginning of the month. Fed Chair Powell’s May 3 press conference concluded with most analysts believing the latest increase was the final hike for this cycle. A series of robust US economic reports forced market participants to re-evaluate their outlook for FOMC monetary policy.

The odds for rates to increase to 5.50% on June 14 are 66% and analysts have pushed calls for the first rate cut out to November from July, earlier … Read more

Retail sales up in April but analysts warn on implications of further rate hikes

Retail sales volumes recovered slightly by 0.5 per cent in April as the sector was lifted by the Easter holidays, however high inflation and strains on household finances continue to hinder spending.

Non-food stores sales volumes rose by 1.0 per cent during the month, data from the ONS shows, following a fall of 1.8 per cent in March, when a particularly rainy start to spring deterred shoppers.

As grocery inflation remains at record highs of circa 17.1 per cent, food stores sales volumes rose by 0.7 per cent in April 2023, following a fall of 0.8 per cent in March 2023.

However volumes were 2.7 per cent below their pre-coronavirus February 2020 levels, as households continue to spend cautiously when doing their weekly shop.

Moreover, online shopping rose 0.2 per cent during the month, following a 1.4 per cent fall in March.

The figures show the impact of inflation, which … Read more

TSX up 140+ on Day, Down on Week

Stocks in Toronto managed to salvage some dignity out of a rough (albeit short) week, with tech and consumer issues pushing Friday’s totals appreciably higher.

The TSX gained 146.23 points to close Friday at 19,920.31. On the week, though, the index still dropped 430 points, or 2.1%.

The Canadian dollar nicked higher 0.18 cents to 73.46 cents U.S.

Tech stocks proved champion among subgroups, as Celestica roared ahead $1.64, or 10.3%, to $17.51, while HUT 8 Mining spiked 18 cents, or 7.1%, to $2.70.

In consumer discretionary issues, Gildan Activewear tacked on 80 cents, or 2.1%, to $38.69, while Dollarama triumphed $1.65, or 2%, to $83.84.

Financials also moved ahead, with Fairfax Financial grabbing $28.92, or 3%, to $991.42, while CI Financial jumped 34 cents, or 2.7%, to $13.18.

Only health-care stocks felt around for the bruises, with Tilray punished 65 cents, or 20.4%, to $2.53, while Chartwell Retirement Residences … Read more