⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

C$ notches weekly gain as 'panic moment' passes on Ukraine

Published 02/25/2022, 10:01 AM
Updated 02/25/2022, 03:38 PM
© Reuters. A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. The Canadian dollar strengthened against the U.S. dollar on Friday after Canadian CPI data showed an increase in core infla
CL
-

By Fergal Smith

TORONTO (Reuters) - The Canadian dollar rallied against the greenback on Friday as traders walked back some of the large moves seen the day before in reaction to Russia's invasion of Ukraine and awaited an interest rate decision next week by the Bank of Canada.

The loonie climbed 0.8% to 1.2720 per greenback, or 78.62 U.S. cents, after trading in a range of 1.2711 to 1.2821.

On Thursday, the currency touched its weakest intraday level in more than two months at 1.2877. It was up 0.3% for the week.

"It feels like markets are moving past the panic moment that we had yesterday," said Eric Theoret, global macro strategist at Manulife Investment Management. "It is really all about the big dollar, the U.S. dollar."

The safe-haven U.S. dollar fell against a basket of major currencies, and stocks globally rose as investors welcomed coordinated Western sanctions on Russia that targeted its banks but not did not block it from a global payments system and left its energy sector largely untouched.

The price of oil, one of Canada's major exports, gave back some recent gains, with U.S. crude futures settling 1.3% lower at $91.59 a barrel.

Analysts doubt that the start of war in Ukraine will stop the Bank of Canada from raising interest rates next Wednesday. A 25 basis point move is priced into money markets which would be the first hike since October 2018.

© Reuters. A Canadian dollar coin, commonly known as the

Canadian wholesale trade was up 3.9% in January from December, a flash estimate from Statistics Canada showed.

Canadian government bond yields were mixed across the curve, with the 10-year rate easing less than half a basis point to 1.916%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.