Canadian dollar lags G10 peers as investors eye more rate cuts
Canadian dollar weakens 0.1% against the greenback
Touches its weakest since Aug. 5 at 1.3868
Price of US oil falls 1%
10-year yield eases 3.5 basis points
By Fergal Smith
TORONTO, Oct 24 (Reuters) -The Canadian dollar edged down to an 11-week low against its U.S. counterpart on Thursday as investors bet the Bank of Canada would need to cut interest rates further to bolster a sluggish domestic economy.
The loonie CAD= was trading 0.1% lower at 1.3850 to the U.S. dollar, or 72.20 U.S. cents, after touching its weakest level since Aug. 5 at 1.3868.
It was the only Group of 10 currency to lose ground against the U.S. dollar .DXY, which was giving back some of its recent gains as U.S. bond yields fell.
The Canadian central bank has cut its benchmark interest rate by 125 basis points since June to 3.75%. Its easing campaign included a half-percentage-point reduction on Wednesday, the first cut of that size in 15 years outside of the pandemic.
"The Bank of Canada cut 50 basis points but it didn't grasp the challenges facing the Canadian economy," said Adam Button, chief currency analyst at ForexLive.
"The market might be looking further out and saying, 'this isn't enough. Rates are still too high for where the economy is now.'"
The BoC's annual economic-growth forecast is overly optimistic, economists said, and another large interest-rate cut this year will likely be required to boost growth.
Investors are betting the BoC will lower the policy rate a further 100 basis points by September, which would leave it in the middle of the 2.25%-3.25% range the central bank estimates as a neutral setting that neither restricts nor stimulates the economy.
The price of oil CLc1, one of Canada's major exports, was trading nearly 1% lower at $70.10 a barrel on worries that slow economic growth in Europe could reduce energy demand.
Canadian bond yields were mixed across a flatter curve, with the 10-year CA10YT=RR down 3.5 basis points at 3.230%.
Reporting by Fergal Smith; Editing by Rod Nickel
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
