Get the clarity you need to navigate shifting market conditions with confidence. The Market Services FX Spotlight delivers timely insights and analysis from RBC Investor Services’ FX Market Trading Desk, helping you understand the currency moves, central bank decisions and geopolitical shifts that matter most to your portfolio and your clients.
Headlines
- Energy was the dominant market force in September, pressuring yields higher and forcing central banks to evaluate the persistence of inflation.
- The Fed, ECB and BoJ all hiked by 25 bps, while the BoC and BoE held steady.
- Canada’s retaliatory tariffs of 15–50% on US goods took effect September 8, reciprocating 50% US tariffs on USD 20 billion worth of Canadian goods that took effect August 22.
- Canada and the EU are exploring “associate member” status to facilitate closer trade and security ties, with further details expected at October’s Montreal summit.
- Canadian labour market data disappointed, with employment falling by 41,700 against expectations, halting the otherwise strong string of recent labour market data. The unemployment rate held at 6.4%
The BoC maintained rates at 2.25%. Markets began pricing in a chance the BoC returns to rate hikes this year. The summary of deliberations released mid-month confirmed this bias toward raising rates, as fears of inflation spilling over into other goods and services from higher energy prices weighed on policymakers.
