AVN 54.75 Decreased By ▼ -0.72 (-1.3%)
BOP 10.65 Increased By ▲ 0.44 (4.31%)
CHCC 127.00 Decreased By ▼ -2.20 (-1.7%)
DCL 8.97 Decreased By ▼ -0.13 (-1.43%)
DGKC 102.98 Decreased By ▼ -1.77 (-1.69%)
EFERT 66.80 Decreased By ▼ -0.25 (-0.37%)
EPCL 31.25 Decreased By ▼ -0.50 (-1.57%)
FCCL 21.10 Decreased By ▼ -0.05 (-0.24%)
FFL 13.66 Increased By ▲ 0.51 (3.88%)
HASCOL 14.12 Increased By ▲ 0.48 (3.52%)
HBL 129.53 Decreased By ▼ -0.21 (-0.16%)
HUBC 81.90 Decreased By ▼ -0.70 (-0.85%)
HUMNL 9.48 Decreased By ▼ -0.03 (-0.32%)
JSCL 15.85 Increased By ▲ 0.17 (1.08%)
KAPCO 24.70 Increased By ▲ 0.35 (1.44%)
KEL 3.54 Decreased By ▼ -0.06 (-1.67%)
LOTCHEM 12.92 Decreased By ▼ -0.04 (-0.31%)
MLCF 33.00 No Change ▼ 0.00 (0%)
OGDC 112.29 Decreased By ▼ -1.26 (-1.11%)
PAEL 33.05 Decreased By ▼ -0.30 (-0.9%)
PIBTL 11.07 Decreased By ▼ -0.03 (-0.27%)
PIOC 81.00 Increased By ▲ 0.94 (1.17%)
POWER 9.11 Increased By ▲ 0.37 (4.24%)
PPL 99.25 Decreased By ▼ -0.05 (-0.05%)
PSO 181.42 Decreased By ▼ -2.10 (-1.14%)
SNGP 55.43 Decreased By ▼ -0.42 (-0.75%)
STPL 11.77 Increased By ▲ 0.22 (1.9%)
TRG 50.16 Increased By ▲ 1.81 (3.74%)
UNITY 12.60 Increased By ▲ 0.03 (0.24%)
WTL 1.05 Increased By ▲ 0.08 (8.25%)
BR100 4,143 Increased By ▲ 46 (1.11%)
BR30 21,269 Increased By ▲ 371 (1.77%)
KSE100 39,897 Increased By ▲ 319 (0.81%)
KSE30 17,307 Increased By ▲ 149 (0.87%)
COVID-19 TOTAL DAILY
CASES 281,136 675
DEATHS 6,014 15
Sindh 122,016 Cases
Punjab 93,571 Cases
Balochistan 11,780 Cases
Islamabad 15,122 Cases
KP 34,324 Cases
Markets

C$ steadies ahead of the expected Fed rate cut

TORONTO: The Canadian dollar was little changed on Tuesday against its US counterpart, trading in a narrow range, as

30 Jul 2019

TORONTO: The Canadian dollar was little changed on Tuesday against its US counterpart, trading in a narrow range, as the currency lacked direction ahead of the expected Federal Reserve interest rate cut this week.

Money markets are convinced the Fed will cut the key benchmark rate by 25 basis points, but it remains to be seen whether this is going to be a one-off cut or whether more cuts will follow.

The Bank of Canada left its benchmark interest rate unchanged at 1.75% this month but highlighted the risks that trade wars pose to the global economy.

Canada's gross domestic product data for May is due on Wednesday, with a Reuters poll forecasting a 0.1% increase, which could help guide expectations for the direction of interest rates.

"It (the reason of flatness in the loonie) is a bit of uncertainty with respect to what the Fed statement is going to look like tomorrow, and again we do have important economic data coming out of Canada as well," said Bipan Rai, executive director and North America head of FX strategy at CIBC capital markets.

At 2:34 p.m. (1834 GMT), the Canadian dollar was trading nearly unchanged at 1.3159 to the greenback, or 75.99 US cents. The currency traded in a range of 1.3152 to 1.3191.

Meanwhile, the price of oil, one of Canada's major exports, rose on optimism the US Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world's biggest oil user.

US crude oil futures settled 2.1% up at $58.05 a barrel.

Canadian government bond prices were lower across the yield curve, with the two-year down 5.5 Canadian cents to yield 1.518% and the 10-year falling 12 Canadian cents to yield 1.489%.

The gap between Canada's 10-year yield and its US equivalent widened by 0.3 basis point to a spread of 57.6 basis points in favor of the US bond, the widest gap since June 21.

Copyright Reuters, 2019