A declining Canadian dollar could add to inflationary pressures and complicate the Bank of Canada's interest rate decisions, especially amid growing trade risks, according to a CIBC Capital Markets report.
The Canadian dollar is set to snap a five-week losing streak against its U.S. counterpart, supported by a broad retreat in the greenback and a weekly rise in crude oil prices.
Swiss Finance Minister Karin Keller-Sutter warned that rising public debt in major economies like France poses a significant risk to economic stability and could spark a new euro crisis.
The U.S. dollar's four-week rally ended as a safe-haven bid for Treasuries and less hawkish commentary from a former Fed official overshadowed hotter-than-expected inflation data.
A sharp rise in Japanese government bond yields is unlikely to trigger a significant unwinding of the popular yen carry trade, as global rate hikes have preserved the interest rate differentials that make the strategy attractive, according to a UBS report.
U.S. Treasury yields recorded their steepest weekly decline since mid-February as investor concerns over heavy corporate debt issuance for AI infrastructure sparked a flight to the safety of government bonds.
U.S. government bond yields eased on expectations of a Federal Reserve rate pause, while French bond yields rose sharply amid civil unrest, widening the risk premium over benchmark German debt.
The British pound edged lower against the U.S. dollar on Monday as investor anxiety over the AI sector weighed on market sentiment and lowered expectations for future Federal Reserve rate hikes.
The euro weakened amid political turmoil and fiscal concerns in France, which sent a key government bond spread to its widest since the 2012 debt crisis. Meanwhile, the U.S. dollar found support from a rebound in technology shares.
