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04 Jun 2025

Bank of Canada Holds Rates, Signals Easing Bias

After a series of rate cuts, the Bank of Canada opted to leave interest rates unchanged for a second consecutive time this morning, and Governor Tiff Macklem subtly communicated a bias toward further easing as officials wait to assess the impact that global trade tensions might have on growth and price pressures in the months ahead. As was widely expected, the overnight rate was left at 2.75 percent after seven consecutive cuts were delivered between June 2024 and March of this year, bringing the benchmark down from its peak at 5 percent. In the official statement setting out the decision,...

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Currency Momentum Slows As Markets Wait To Exhale

An early-week rebound in the dollar is losing steam this morning as markets shift focus toward macroeconomic indicators and await developments in trade negotiations between the US and China. The greenback is trading slightly lower against a basket of its most-traded peers, benchmark ten-year Treasury yields are almost unchanged, and equity futures are positioning for modest gains at the North American open. Data published yesterday showed US labour markets cooling only slightly in April, even as business and consumer confidence measures plunged. According to the closely-watched Job Openings and Labor Turnover survey, job postings increased by 191,000 to 7.4 million...

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