The Canadian dollar weakened on Tuesday as investors positioned themselves ahead of rate decisions from the Bank of Canada and the U.S. Federal Reserve, both due Wednesday. The U.S. dollar rose 0.07% to C$1.4022, leaving the loonie at about 71.32 U.S. cents, after a pause following seven consecutive sessions of gains, its longest winning streak since March 2022. A Reuters poll found that most surveyed economists expected the Bank of Canada to raise its overnight rate by 25 basis points to 2.50%, with views divided between persistent inflation risks and slowing growth. The article adds that the Fed's decision, oil prices and demand for the U.S. dollar could also move the loonie.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
USD/CAD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/26/2026 | 1.40130 |
| Change that session | +0.04% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Bank of Canada interest rate decision Oct . 28 : Will rates rise ?
- Will Tiff Macklem play with economic fire ?
The opinion piece by David Rosenberg argues against a Bank of Canada rate hike, even though markets are pricing a hike next week as a near certainty. He says headline inflation near 3% for three straight months stems mostly from gasoline prices, up 28% over the past year, in a global supply shock, while core inflation measures are at or below 2%. He points to weak domestic conditions, including a roughly 1% trend in real GDP growth, more than 40,000 jobs lost this year, a contracting housing market, and wage growth slowing to 2.3% year over year from 3.3% a year earlier. Job vacancies have been flat for seven consecutive months, and collective bargaining agreements average about 3% a year without cost-of-living clauses. In his view, a rate hike would squeeze real incomes and consumer spending, which accounts for around 60% of the economy.
- Oil Risks and Inflation Expectations Drive Bank of Canada Hike Calls
Scotiabank Economics expects the Bank of Canada to raise its policy rate by 25 basis points on Oct. 28, as energy-driven inflation risks grow despite softer core inflation and weaker employment. Desjardins and BMO Capital Markets economists also favor a hike, and Reuters reported that Governor Tiff Macklem said the Bank expects to raise its inflation forecast. Scotiabank's call departs from its Sept. 9 outlook, which had listed an October increase only as a possibility. In an Oct. 19 note, Derek Holt wrote that the bank forecasts a 25 basis-point hike, while its Oct. 20 market snapshot implied 22 basis points of a possible 25-basis-point increase.
- Societe Generale Strategist Sees Wide USD / CAD Range as U . S . Growth Leads
Societe Generale Chief Currency Strategist Kit Juckes expects the U.S. dollar to trade between CA$1.20 and CA$1.45 per US$1 over the next decade, citing growth prospects and the gap between the two countries' two-year interest rates, per FXStreet. A move below CA$1.35 would depend on firmer Canadian economic data or a more favorable geopolitical backdrop. The IMF projects U.S. real GDP growth of 2.3% in both 2026 and 2027, versus 1.1% and 1.7% for Canada, narrowing the U.S. edge from 1.2 to 0.6 percentage points next year. Canada's Parliamentary Budget Office cut its forecasts to 0.9% for 2026 and 1.5% for 2027, blaming U.S. tariffs and Canadian countermeasures and expecting subdued growth through the first half of 2027. The Bank of Canada held its overnight rate at 2.25%, with its next decision due Oct. 28.
- Canadian housing market on its knee as odds of Bank of Canada rate hike rise
- Canadian dollar hit nearly one - month high after Alberta vote
The Canadian dollar rose as much as 0.55% against the US dollar, its best day since September, after about 76% of Albertans voted to remain in Canada in a referendum on Monday. The result is a win for Prime Minister Mark Carney, as voters rejected a binding referendum on independence that could have been held as early as 2027. The loonie also drew support from expectations the Bank of Canada will raise rates at its Oct. 28 meeting, with overnight swaps pricing about an 80% chance of a hike, up from roughly 30% a week earlier. Canada's inflation rose to 3.1% in September, and households' longer-term inflation expectations are rising; Governor Tiff Macklem said higher oil prices are supporting growth. The bank has warned it may need to raise rates if energy prices stay elevated and inflation pressures spread to goods and services.
Related markets
Latest news
- EU Gas Prices Hit 4-Year High
European wholesale gas prices topped 97 euros per megawatt-hour on October 26, the highest since December 2022, as EU gas storage was only 74.62% full on October 25. LNG flows through the Strait of Hormuz remain about 80% below pre-conflict levels following the US-Israeli war on Iran. Trading Economics forecasts 98.20 euros/MWh by the end of Q4 2026, while in the UK one-month gas futures rose 4%, and Brent is around 115 USD a barrel. EDF expects UK household energy bills to rise 27% in January 2027, lifting the average annual bill to nearly 2,200 pounds (2,940 USD). Berlin plans to ask households and businesses to contribute over 3 billion euros across 10 years to an emergency gas reserve, while the EU's Russian gas share fell from about 45% in 2021 to about 12% in 2025.
- Can Anthropic prove it can rival Big Tech? Its balance sheet says yes.
Host Ejaaz Ahamadeen of In the Loop says Anthropic's (ANTH.PVT) S-1 filing shows about $132 billion in cash, far from the near-zero balance rumored in recent months despite heavy compute spending. Around $19 billion of that is reportedly in investment-grade contracts, giving the company funds for large capital expenditure commitments. He compares that cash pile with those of Apple and of Google and Meta before they spent heavily on GPUs, saying Anthropic now plays in the same league. He notes that Anthropic lacks the revenue diversification of Google or Meta, making it a more precarious bet as an IPO candidate because it relies solely on AI.
- Anthropic's 'tension' between profitability & 'public good': IPO expert
Jim Neesen, managing partner of The Connor Group, tells Yahoo Finance's Brian Sozzi that Anthropic's (ANTH.PVT) IPO filing is unusual because it is a public benefit company. Seven founders hold 50.1% of the company, and a board approved by a trust fund will oversee it, with social benefit built into its mission alongside profit. He sees a group of founders making joint decisions as potentially positive, but says the structure will be tested at this scale and growth rate. He describes a tension between profitability, public good and the quarterly pressure from investors, and notes Anthropic has not yet published its total addressable market (TAM), though he expects it to be north of 10 trillion or 20 trillion, citing SpaceX's claim that AI is over 29 trillion.
- Our Model and Wall Street Agree on Amazon's Target. Now the Quarter Has to Deliver.
The 24/7 Wall St. model sets a $329.70 price target for Amazon, 31.68% above the $250.38 close, with a buy rating at 70% confidence, within 0.61% of the Wall Street consensus target of $331.72. Q3 results are due October 29 after the close, with guidance for $197–202 billion in sales and $22.5–26.5 billion in operating income, versus $17.4 billion a year earlier. Q2 revenue rose 19.6% to $200.61 billion and AWS grew 37% to $42.23 billion, yet shares sit about 12.8% below their 52-week high of $287.20. The bear case of $283.71 points to about $220 billion of 2026 capex, trailing free cash flow of -$7.6 billion and long-term debt of $119.1 billion, while the $378.96 bull case rests on an AWS backlog of $496 billion. The article says the thesis depends on Q3 operating income and AWS growth staying near the Q2 pace.
- BC-Most Active Stocks
The article lists the most active stocks on the Nasdaq Composite, NYSE and NYSE American, published by AP on October 27, 2026 (GMT+7). On Nasdaq, Solowin Holdings led with 270,698,916 shares traded, followed by 22nd Century Group (195,124,628) and Nexera Technologies (135,322,623). Large technology names also appeared, including NVIDIA (19,429,424 shares) and Tesla (13,463,944 shares).
- The real source of tech market volatility is cash flow, not credit default swaps
Yahoo Finance Executive Editor Brian Sozzi argues that the main driver of volatility in tech stocks is collapsing free cash flow at hyperscalers, not credit default swaps, since that cash will be used to repay the debt they take on to fund AI infrastructure. Citing Evercore ISI's Julian Emanuel, he notes the hyperscaler group of Meta, Amazon, Google, Microsoft, Oracle and SpaceX is expected to have free cash flow near negative $200 billion over the next year. Meta posted negative free cash flow in its third quarter for the first time since 2012, while SpaceX burned about $9.9 billion, and neither company signaled a slowdown in spending. Similar commentary is expected from Google, Amazon and Microsoft when they report this week, which supports Emanuel's view of more quarters of negative free cash flow.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.