Rated as a top Investment site for 2025!

Canada's Loonie Pressured by Fed's Stance

February 18, 2025 (Investorideas.com Newswire) Investorideas.com, a go-to platform for big investing ideas releases market commentary from David Eng, Investment Advisor, Harbourfront Wealth - Sonora Wealth Group.

"The Canadian dollar weakened against the US dollar, as markets reacted to hawkish remarks from Federal Reserve officials, including Governors Bowman and Waller. Their comments signaled that interest rates could remain elevated longer, strengthening the greenback.

On the geopolitical front, the US-Russia talks on the Ukraine conflict add another layer of complexity. Should the negotiations yield results, the Loonie may experience a bullish momentum, while a setback could exert pressure on the Canadian currency as investors move to safe-haven assets.

Domestically, the latest inflation data should improve the currency's short-term outlook. January's Consumer Price Index (CPI) grew by 1.9% year-on-year, up from 1.8% in December, driven primarily by surging energy costs. Excluding gasoline, the index increased by 1.7%, highlighting the energy's role in inflationary pressures.

Meanwhile, food prices experienced a notable 5.1% decline in restaurant food prices, driven by the GST/HST exemption introduced in December 2024. On the other hand, shelter prices increased by 4.5%, reflecting continued pressures in the property market. Inflationary pressures could affect the Bank of Canada's rate-cut cycle, providing some support for the national currency.

Looking forward, investors will closely monitor upcoming domestic economic indicators. Weak data is likely to exert additional selling pressure on the currency, while strong results could boost the Loonie."

About Investorideas.com - Big Investing Ideas

Investorideas.com is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors.

Disclaimer/Disclosure: disclaimer and disclosure info https://www.investorideas.com/About/Disclaimer.asp

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Learn more about our news, PR and social media, podcast sponsorship and ticker tag services at Investorideas.com

https://www.investorideas.com/Investors/Services.asp

Learn more about digital advertising and guest posts

https://www.investorideas.com/Advertise/

Sign up for free stock news alerts at Investorideas.com

https://www.investorideas.com/Resources/Newsletter.asp

Contact Investorideas.com

800 665 0411