Canadian dollar edges higher as retail sales data impresses investors
TLT•Bond yields and trade tensions weigh on outlook
- Canada will do whatever it takes to defend its workers, farmers and businesses in a trade war with the U.S., Prime Minister Mark Carney told a meeting of provincial premiers.
- Speculators raised their bearish bets on the Canadian dollar to the highest level among the major currencies in the weeks before U.S. President Donald Trump announced new tariffs on Canada, helping push the loonie to a recent 14-month low.
- Canadian government bond yields moved higher across the curve as expectations for Bank of Canada interest rate hikes also rose. The 10-year CA10YT=RR was up 5.1 basis points at 3.643%, after earlier touching its highest level since May 20 at 3.665%.
