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☆ Who is Hafize Gaye Erkan, Turkey's first female central bank chief?
▼ + stars: | 2023-06-09 | by ( Karin Strohecker | ) www.reuters.com time to read: +2 min

LONDON, June 9 (Reuters) - Turkey's new central bank governor Hafize Gaye Erkan faces the tough task of alleviating a bruising cost-of-living crisis while hoping to restore investor confidence at home and abroad after years of unorthodox policymaking. Appointed on Friday, the 43-year old is the first woman at the helm of the country's central bank, taking over from Sahap Kavcioglu, who spearheaded President Tayyip Erdogan's rate-cutting drive against a backdrop of soaring inflation. Her new role makes her one of only around a dozen women currently serving as central bank governors around the world, including the likes of ECB President Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina and Serbia's Jorgovanka Tabakovic. Having spent all of her professional life outside Turkey, Erkan has no formal central banking experience, making her leanings for monetary policy unclear. Kathryn Wylde, president and CEO of Partnership for New York City, a nonprofit organization where Erkan once served as a board director, says Erkan was seen as "tough, smart, and effective."

Persons: Hafize Gaye Erkan, Sahap Kavcioglu, Tayyip Erdogan's, Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina, Erkan, Goldman Sachs, Mark Carney, Mario Draghi, William Dudley, Goldman, Marsh McLennan, Kathryn Wylde, Wylde, Karin Strohecker, Jonathan Spicer, Hugh Lawson Organizations: Russian Central Bank Governor, Bogazici University, Harvard Business School's, Management, Research, Financial Engineering, Princeton University, Bank of Canada, Bank of England, New York Fed, First Republic Bank, Banking, Finance, New, Thomson Locations: Sahap, Istanbul, Turkey, New York City

The economy shed a net 17,300 jobs in May, entirely in full-time work, while the jobless rate inched up to 5.2%, Statistics Canada said. Analysts surveyed by Reuters had forecast a net gain of 23,200 jobs and for the unemployment rate to edge up to 5.1% in May after staying at 5.0% since December. A series of surprisingly strong economic data and stubbornly high inflation led the Bank of Canada to raise its overnight rate to a 22-year high of 4.75% on Wednesday. "While this is an ugly set of jobs data, the labour force survey is notoriously volatile," said Royce Mendes, head of macro strategy at Desjardins Group. Reports on jobs, inflation and gross domestic product are due out ahead of the next policy announcement on July 12.

Persons: Andrew Grantham, Paul Beaudry, Beaudry, Royce Mendes, Ismail Shakil, Steve Scherer, Fergal Smith, Dale Smith, Susan Fenton, Nick Macfie, Jonathan Oatis Organizations: OTTAWA, Statistics, Reuters, Bank of Canada, Bank of, CIBC Capital Markets, Desjardins Group, Canadian, Thomson Locations: Canada, Statistics Canada, Bank of Canada, Ottawa, Toronto

☆ Asia shares buoyed by Fed pause bets; dollar heavy
▼ + stars: | 2023-06-09 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

Japanese and Australian bond yields followed those on U.S. Treasuries lower, and the dollar remained on the defensive early in the Asian session. MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) added 0.6%, and at one point touched its strongest level since Feb. 16. Traders now lay 1-in-4 odds for the Fed to raise rates by a quarter point on June 14, versus 75% probability of a pause. "I wouldn't go all in and say we're going to get a rate hike, but I think we should be at least 50% priced," said Tony Sycamore, an analyst at IG Markets in Sydney. The dollar added 0.15% to 139.135 yen , after earlier slipping to a one-week low of 138.765.

Persons: Hong, Tony Sycamore, Jerome, Powell's, Powell, undertightening, Tayyip Erdogan's, WTI fututes, Kevin Buckland, Stephen Coates Organizations: Federal Reserve, Japan's Nikkei, Nasdaq, Fed, Bank of Canada, Reserve Bank of Australia, IG Markets, New, U.S, West Texas, Brent, Thomson Locations: TOKYO, Asia, Pacific, Sydney, Tokyo, New York, U.S, United States, Iran

☆ Bank of Canada hiked rates over alarm at household spending, stubborn inflation
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +3 min

By Steve Scherer and David LjunggrenOTTAWA, June 8 (Reuters) - Surprisingly strong household spending in the first quarter and stubbornly high core inflation were among the top reasons the Bank of Canada hiked rates after a four-month pause, a senior official said on Thursday. The Bank of Canada (BoC) on Wednesday hiked its overnight rate to a 22-year high of 4.75%, and markets and analysts forecast yet another increase next month after the policy announcement declared monetary policy was not sufficiently restrictive. Speaking to business executives in Vancouver in the BoC's first remarks since raising rates, Beaudry singled out unexpectedly strong household spending, a rebound in the housing market, a tight labor market, and sticky core inflation as the main factors behind the latest move. Core inflation measures "seem to have lost their downward momentum", he said. There is a greater risk of higher rates in the future, so "it's important to think ahead", Beaudry said, and "be better prepared in the eventuality that we have entered a new era of structurally higher interest rates".

Persons: Steve Scherer, David Ljunggren OTTAWA, Paul Beaudry, Beaudry, David Ljunggren Organizations: Bank of Canada, Wednesday, BoC, Reuters, Thomson Locations: Vancouver, Reuters Ottawa

☆ Asian shares slide as traders fret on Fed rates
▼ + stars: | 2023-06-08 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.53%, while Japan's Nikkei (.N225) edged 0.08% higher. The move from the BoC comes after Australia's central bank also stunned markets by hiking interest rates earlier this week. Treasury yields were stable in early Asian hours after surging overnight after the move from Canada's central bank. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.4 basis points at 4.554%. In the currency market, the dollar index , which measures the U.S. currency against six major peers, eased 0.029%, with the euro up 0.09% to $1.0707.

Persons: Ryan Brandham, hawkish, Hong, HSI, Saxo, Brent, Ankur Banerjee, Christian Schmollinger Organizations: Bank of Canada, Federal Reserve, Japan's Nikkei, BoC, Validus Risk Management, Reserve Bank of Australia, Fed, Saxo Markets, Traders, Reuters, Treasury, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, North America, China, Canada's

Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. "Today's data in terms of higher claims shows that the Fed policy is having a clear effect," said David Russell, vice president of Market Intelligence at TradeStation. The CBOE Volatility index (.VIX), also known as Wall Street's fear gauge, dropped to a fresh pre-pandemic low of 13.73. The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The S&P index recorded six new 52-week highs and two new lows, while the Nasdaq recorded 38 new highs and 29 new lows.

Persons: David Russell, Wells, Ryan Cohen, Piper Sandler, Zhu Jiang, Sruthi Shankar, Shristi, Vinay Dwivedi Organizations: GameStop, Dow, Nasdaq, Treasury, Traders, Market Intelligence, Fed, Nvidia Corp, Apple Inc, Tesla Inc, GameStop Corp, U.S . Labor Department, Bank of Canada, BoC, Dow Jones, Adobe, Lucid, NYSE, Thomson Locations: Wells, U.S, Wells Fargo, China, Bengaluru

Despite hitting an 18-month low of 4.70% in April, analysts do not expect India's inflation to fall to the Reserve Bank of India's (RBI) 4% medium-term target in a sustainable manner for some time. India has raised rates by 250 basis points (bps) since May 2022, but surprised analysts in April by keeping them unchanged. India's hold on rates contrasts with recent central bank actions elsewhere. "Our goal is to achieve the inflation target of 4% and keeping inflation within the comfort band of 2-6% is not enough," Das said. Das said that the central bank would remain "nimble" with its liquidity operations amid spikes in overnight rates despite surplus liquidity in the banking system.

Persons: Shaktikanta Das, OIS, Das, Michael Patra, Suvodeep Rakshit, Gaura Sen Gupta, Swati Bhat, Sudipto Ganguly, Ira Dugal, Krishna N, Sam Holmes, Kim Coghill Organizations: REUTERS, Reserve Bank of India's, MPC, Reserve Bank of Australia, Bank of Canada, Reuters, Reuters Graphics Reuters, IDFC, Thomson Locations: Delhi, India, Anushree, MUMBAI

☆ Morning Bid: O Canada! Markets wary of Fed hawkish surprise
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Ankur BanerjeeAnother day, another surprise hike. Broader consensus is that the Fed will do at least one more hike. The CME FedWatch tool showed the probability of the Fed hiking by 25 bps next week is 36%, it was 22% a day earlier. With a light data calendar and futures pointing to a mixed open in Europe, markets could drift on Thursday. Economists expect the Federal Reserve to pause on its tightening cycle on its June 13-14 meeting as price pressures soften and as its key rate rises above inflation for the first time since mid-2020.

Persons: Ankur Banerjee, Ryan Cohen, Coinbase, Brian Armstrong, Gary Gensler, Christopher Cushing Organizations: Ankur, Reserve Bank, Bank of, U.S . Federal Reserve, Reuters, U.S, GameStop, U.S . Securities, Exchange, Federal Reserve, Reuters Graphics Reuters, Thomson Locations: Asia, Japan, Europe, Singapore

☆ Gold climbs on softer dollar as traders weigh Fed verdict
▼ + stars: | 2023-06-08 | by ( ) www.cnbc.com time to read: +2 min

Bars of gold are seen at the Krastsvetmet company, one of the world's largest producers of precious metals in Moscow, Russia on January 31, 2023. Gold prices edged higher on Thursday, supported by a softer dollar, although bullion hovered near the previous session's lows as investors awaited cues from the U.S. Federal Reserve. Spot gold was up 0.3% to $1,946.09 per ounce by 0441 GMT, after shedding 1% in the previous session. The dollar index eased slightly making gold less expensive for investors holding other currencies. Gold still remains a viable macro portfolio tail hedge, despite a hawkish Fed regime, Citi said in a note.

Persons: Ajay Kedia, Clifford Bennett Organizations: U.S . Federal, Kedia Commodities, Reuters, Bank of Canada, Wednesday, ACY Securities, Citi Locations: Moscow, Russia, U.S, Mumbai

☆ Futures muted as bond yields rise on rate jitters
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Futures up: Dow 0.01%, S&P 0.06%, Nasdaq 0.09%June 8 (Reuters) - U.S. stock index futures were largely flat on Thursday as government bond yields hovered near recent highs on worries that major central banks could keep raising interest rates. The benchmark S&P 500 (.SPX) and the tech-heavy Nasdaq (.IXIC) closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike. The 2-year Treasury yield , which tends to move in step with short-term rate expectations, rose for a third day to 4.56%, as investors await the Federal Reserve meet next week. Eventually we don't think the Fed will hike in July," Jefferies strategist Mohit Kumar said. They see a 50% chance of a rate hike in July.

Persons: Jefferies, Mohit Kumar, Russell, Thierry Breton, Ryan Cohen, Zhu Jiang, Sruthi Shankar, Vinay Dwivedi Organizations: Dow, Nasdaq, Bank of Canada, BoC, Microsoft Corp, Apple Inc, Amazon.com Inc, Treasury, Reserve, Traders, U.S . Labor Department, Dow e, Meta, Inc, GameStop Corp, Thomson Locations: U.S, KBW, China, Bengaluru

☆ Dollar steady as traders consider Fed, global rates outlook
▼ + stars: | 2023-06-08 | by ( ) www.cnbc.com time to read: +3 min

The increased expectations that U.S. and global interest rates may have further to rise has come on the back of surprise rate increases by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) this week. The Canadian dollar was last steady at C$1.3365 to the greenback, after rising to a one-month top of C$1.3321 in the previous session. The U.S. dollar index dipped slightly to 104.02, though strayed not too far from an over two-month high hit last week, on the back of higher Treasury yields. Money markets are pricing in a 29% chance that the Fed raises rates by 25bps at its policy meeting next week. "Markets have raised their FOMC rate hike expectations following a surprise Bank of Canada rate hike," said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

Persons: Edward Moya, Carol Kong, Ray Attrill Organizations: Treasury, U.S . Federal Reserve, Bank of Canada, BoC, Reserve Bank of Australia, Wednesday, Canadian, U.S, European Central Bank, 25bps, of Canada, Commonwealth Bank of Australia, National Australia Bank Locations: Chicago, Asia

☆ Morning Bid: Canadian cloud, rates markets checked
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanWildfire smoke wasn't the only cloud from Canada that drifted over the United States this week. It was enough to nudge borrowing rates back up slightly across the maturity spectrum and served a shot across the bow to otherwise buoyant stock markets and subdued risk gauges. Futures markets still see the Fed skipping a rate rise next week, delivering one final quarter-point hike in July and reversing that move by year end. Two-year Treasury yields firmed about 10 basis points to 3.80% - and sovereign debt yields around the world edged higher in sympathy. With Fed policymakers in a blackout period before next week's meeting, and new data points thin this week, market edginess was dominated by shifting sentiment more than anything.

Persons: Mike Dolan, Russell, Jane Merriman Organizations: Federal Reserve, Weekly U.S, Fed, Stock, Treasury, Reuters Graphics Reuters, Thomson, Reuters Locations: U.S, Canada, United States, Brussels

The small-cap index Russell 2000 (.RUT) ticked higher as investors kept moving away from megagap and growth stocks after their strong gains. Recently, U.S. shares have been boosted by a megacap stocks rally and a stronger-than-expected earnings season, with the S&P 500 (.SPX) up almost 20% from its October 2022 lows. Wells Fargo raised the price target on Netflix (NFLX.O) shares to $500 from $400, the highest on Wall Street, according to Refinitiv. Energy index (.SPNY) rose after oil prices edged higher, while the KBW Regional Banking Index (.KRX) hit a two-month high. According to preliminary data, the S&P 500 (.SPX) lost 16.31 points, or 0.38%, to end at 4,267.54 points, while the Nasdaq Composite (.IXIC) lost 170.59 points, or 1.28%, to 13,105.83.

Persons: Wells, Russell, we've, Paul Baiocchi, jitters, Wells Fargo, Campbell, Shubham Batra, Shristi, Vinay Dwivedi, Richard Chang, David Gregorio Our Organizations: Netflix, Nasdaq, SS, C ALPS Advisors, Treasury, Bank of Canada, Federal, Dow Jones, Yext, U.S . Securities, Exchange Commission, SEC, Invest, Thomson Locations: megagap, U.S, KBW, York, Coinbase, Bengaluru

☆ Dollar edges up against yen as investors wait on inflation data, Fed
▼ + stars: | 2023-06-07 | by ( Karen Brettell | ) www.reuters.com time to read: +3 min

NEW YORK, June 7 (Reuters) - The dollar edged higher against the yen on Wednesday as investors awaited U.S. inflation data for May and the Fed’s interest rate decision next week, while the Canadian dollar jumped after the Bank of Canada hiked rates. (USCPI=ECI)"We expect a fair degree of consolidation ahead of the Fed decision next week," said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. "That CPI number’s going to be critical for the Fed decision as well. Traders have also priced out most expectations that the Fed will cut rates this year as inflation remains above target. Australia's central bank chief on Wednesday stepped up a warning of more rate hikes ahead to temper rising price pressures.

Persons: Bipan Rai, Jane Foley, they’ll, Lou Brien, Amanda Cooper, Sharon Singleton, Emelia, Nick Macfie Organizations: YORK, Canadian, Bank of Canada, CIBC Capital Markets, Traders, Rabobank, U.S, Fed, ECB, Reserve Bank of, Thomson Locations: U.S, North American, Toronto, Canada, Australia, Chicago, Reserve Bank of Australia, London

OTTAWA, June 7 (Reuters) - The Bank of Canada on Wednesday hiked its overnight rate to a 22-year high of 4.75%, and markets and analysts immediately forecast yet another increase next month to ratchet down an overheating economy and stubbornly high inflation. Noting an uptick in inflation in April and the fact that three-month measures of core inflation remained high, the Bank of Canada (BoC) said that "concerns have increased that CPI inflation could get stuck materially above the 2% target." However, Canada Finance Minister Chrystia Freeland said the economic rebound from the COVID-19 pandemic and Russia's invasion of Ukraine has been stoking price increases. "To bring demand lower, which is the bank's goal to achieve their 2% inflation target, we just simply need more tightening." The BoC said it would continue to assess economic indicators going forward to see if they "are consistent with achieving the inflation target."

Persons: Derek Holt, Paul Beaudry, Canada's, Pierre Poilievre, Justin Trudeau, Chrystia Freeland, Andrew Kelvin, Steve Scherer, David Ljunggren, Fergal Smith, Divya Rajagopal, Nivedita Balu, Mark Porter Organizations: OTTAWA, Bank of Canada, Wednesday, Canadian, Scotiabank, BoC, Conservative Party, Liberal, Canada Finance, TD Securities, Thomson Locations: British Columbia, Ukraine, Canada, Toronto

That hawkish change in market expectations has helped boost the U.S. dollar to its highest level since March. Just over 25% of economists in the poll, 23 of 86, forecast at least one Fed rate cut by the end of 2023, but that is down from 28% in the last poll. The U.S. Labor Department is due to release consumer price inflation data on June 13, the first day of the Fed meeting. "If most Fed officials feel at least another 25-basis-point hike will be necessary, it seems simplest to deliver that hike in June rather than 'skip'." Inflation as measured by core PCE was forecast to remain above 2% at least until 2025.

Persons: Jerome Powell, Powell, Philip Marey, Janet Yellen, Andrew Hollenhorst, Oscar Munoz, Prerana Bhat, Indradip Ghosh, Vijayalakshmi Srinivasan, Maneesh Kumar, Ross Finley, Mark Potter, Paul Simao Organizations: U.S . Federal, Reuters, U.S, Rabobank, Treasury, Bank of Canada, U.S . Labor Department, Citi, National Bureau of Economic Research, TD Securities, Thomson Locations: BENGALURU, U.S, Canadian

☆ Bank of Canada hikes rates to 4.75%, highest in 22 years
▼ + stars: | 2023-06-07 | by ( ) www.cnbc.com time to read: +2 min

The Bank of Canada in Ottawa, Ontario, Canada, on Thursday, May 18, 2023. The BoC on Wednesday hiked its key rate to 4.75%, the highest level in 22 years. The Bank of Canada on Wednesday hiked its key overnight benchmark rate to 4.75%, the highest level in 22 years, on increasing concerns that inflation could get stuck significantly above its 2% target amid persistently strong economic growth. The central bank had been on hold since January to assess the impact of previous hikes after raising borrowing costs eight times to a 15-year high of 4.50% - the fastest tightening cycle in the bank's history. About two-thirds of economists polled by Reuters last week expected the central bank to keep rates on hold through to end-2023.

Organizations: Bank of Canada, BoC, Wednesday, Reuters Locations: Ottawa , Ontario, Canada

☆ Morning Bid: China disappoints again, fanning speculation on stimulus
▼ + stars: | 2023-06-07 | by ( ) www.reuters.com time to read: +2 min

For the record, exports posted a bigger-than-expected drop of 7.5% year-on-year, sending the trade surplus to a 13-month low, while imports remained mired in negative territory. Indeed, RBA Governor Philip Lowe was still explaining Tuesday's policy decision in a speech to bankers after the central bank wrong-footed economists who predicted there would be a rate pause for a second straight month. Expectations of a follow-up hike in July cushioned the Aussie from the weak Chinese trade numbers and Australia's own below-forecast first-quarter gross domestic product data. Stock markets in Asia were mixed, as were U.S. equity futures, following a slightly firmer finish on Wall Street. Light positioning could well persist into next week's lineup of major central bank meetings, as the earnings season draws to a close.

Persons: Sonali Desai China's, Philip Lowe, Fabio Panetta, Edouard Fernandez, Bollo, Luis de Guindos, Klaas, Sonali Desai, Edmund Klamann Organizations: Reuters, Bank, Bank of Canada, Stock, U.S, Thomson Locations: Beijing, Europe, Asia, Brussels

☆ Markets are making a bet that inflation is finally starting to ease
▼ + stars: | 2023-06-07 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

There is "good news for both inflation and growth," Evercore ISI Chair Ed Hyman said in a client note Tuesday. Fed officials already had been largely discounting shelter prices that they expect to recede through the year. Core services inflation "is likely to slow significantly for the rest of this year and next," Hyman wrote. To be sure, inflation is likely to remain a problem ahead, and Fed officials have stated multiple times that the current level is too high . Both increases "should also be an important reminder to markets and Fed officials," Citigroup economist Andrew Hollenhorst wrote Wednesday.

Persons: bank's, Ed Hyman, Hyman, —, Christopher Waller, Andrew Hollenhorst, Janet Yellen, Yellen, we're Organizations: Federal Reserve, Fed, PMI, Reserve Bank of Australia, Bank of Canada, Citigroup

☆ Morning Bid: Fearless VIX, China miss, Canada hike?
▼ + stars: | 2023-06-07 | by ( ) www.reuters.com time to read: +4 min

Wall St's 'fear index', the VIX (.VIX) gauge of implied S&P500 equity volatility, closed below 14 on Tuesday for the first time since February 2020 - more than 5 points below its 33 year average. What's more, the OECD saw Fed rates peaking after just one more hike to the 5.25-5.5% range and "modest" cuts next year. Oil prices remain lower on the week despite new Saudi output cut plans and year-on-year prices are still falling at 36%. Events to watch for later on Wednesday:* Bank of Canada key policy interest rate announcement* U.S. April trade balance. Federal Reserve issues Consumer Credit report for April* Britain's Prime Minister Rishi Sunak travels to Washington to meet with U.S. President Joe Biden* U.S. corporate earnings: Campbell Soup, Brown-FormanReuters GraphicsReuters GraphicsReuters GraphicsReuters GraphicsBy Mike Dolan, Editing by Louise Heavens <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

Persons: Mike Dolan, you'd, eked, Tayyip Erdogan, Mehmet Simsek, Rishi Sunak, Joe Biden, Campbell, Brown, Forman, Louise Heavens Organizations: U.S, Organisation for Economic Cooperation, Development, World Bank, OECD, Bank of Canada, Canadian, Bank of, Federal, Britain's, Forman Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, York, Saudi, Asia, Bank of Canada, Washington

The Bank of Canada's decision to raise rates to a 22-year high of 4.75% was not widely expected. This followed an equally surprising rate hike from Australia the day before, a one-two hawkish punch from policymakers that investors had probably not braced for. The Reserve Bank of India is expected to leave its key interest rate unchanged at 6.50% and for the rest of 2023, according to a Reuters poll of economists. The Australian dollar, which hit a one-month high on Wednesday following the RBA's rate hike, could get a nudge from Australian trade data on Thursday. Here are three key developments that could provide more direction to markets on Thursday:- India interest rate decision- Japan GDP (Q1, revised)- Australia trade (April)By Jamie McGeever;Our Standards: The Thomson Reuters Trust Principles.

Persons: Jamie McGeever Organizations: Nasdaq, Mega Tech, Reserve Bank of, U.S, Thomson, Reuters Locations: India, Canada, Australia, Reserve Bank of India, Japan

☆ TSX pares gains after surprise BoC rate hike
▼ + stars: | 2023-06-07 | by ( Ankika Biswas | ) www.reuters.com time to read: +2 min

June 7 (Reuters) - Canadian stocks pared gains on Wednesday after the country's central bank's surprise decision to raise its benchmark interest rates, while a boost from energy shares helped keep the main stock index afloat. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was up 0.05%, after rising as much as 0.4% to 20,149.95 ahead of the rate decision. The Bank of Canada (BoC) hiked the key rate to 4.75%, the highest level in 22 years, on increasing concerns that inflation could get stuck significantly above its 2% target. Canadian money markets see a near-50% chance of another rate hike in July, fully pricing in further tightening by September. BOCWATCHInvestors are now on the lookout for inflation data out of the U.S. and the Federal Reserve's policy meeting next week.

Persons: Diana Avigdor, Ankika Biswas, Shashwat Chauhan, Shilpi Majumdar Organizations: Toronto Stock, Bank of Canada, BoC, Capital Management, BOCWATCH, Energy, North West Company, Thomson Locations: China, Bengaluru

☆ Greenback gains, Aussie jumps on RBA rate hike
▼ + stars: | 2023-06-06 | by ( Karen Brettell | ) www.reuters.com time to read: +3 min

NEW YORK, June 6 (Reuters) - The U.S. dollar gained against the euro and yen on Tuesday as investors focused on the likelihood that the Federal Reserve will continue hiking rates, while the Aussie jumped after the Reserve Bank of Australia (RBA) surprised with a rate increase. “We’re waiting to see if inflation is going to provide some upside surprises,” said Edward Moya, senior market analyst at OANDA in New York. Fed funds futures traders see the Fed as likely to then resume rate increases, with a 65% chance of an at least 25 basis-point increase in July, according to the CME Group's FedWatch Tool. The euro was last down 0.15% against the dollar at $1.0694 and the greenback gained 0.06% to 139.64 yen . ========================================================Currency bid prices at 3:00PM (1900 GMT)Additional reporting by Samuel Indyk in London; Editing by Sharon Singleton and Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

Persons: “, ”, Edward Moya, we’re, Moya, Chris Turner, Samuel Indyk, Sharon Singleton, Chizu Organizations: YORK, U.S ., Federal Reserve, Reserve Bank of Australia, New York Fed, Bank of, BoC, U.S, Canadian, Thomson Locations: U.S, New York, London

The Aussie was last up 0.6% at $0.6656, after leaping as high as $0.6686, a level last seen on May 16. "For this week it will be wait-and-see mode for euro-dollar," Al-Saraf said, expecting euro-dollar to remain rangebound around 1.07. Meanwhile, the dollar was flat at 139.58 yen , while sterling fell 0.2% to $1.2410. Elsewhere, bitcoin attempted to find its feet around $25,700, after tumbling 5.1% on Monday in its biggest drop since April 19. Reporting by Samuel Indyk and Kevin Buckland; Editing by Shri Navaratnam, Kim Coghill and Ed OsmondOur Standards: The Thomson Reuters Trust Principles.

Persons: Sean Callow, Chris Turner, Mohamad Al, Saraf, bitcoin, Binance, Changpeng Zhao, Samuel Indyk, Kevin Buckland, Shri Navaratnam, Kim Coghill, Ed Osmond Organizations: Australian, Reserve Bank of Australia, U.S, Westpac, Bank of, BoC, Canadian, CENTRAL FOCUS, Market, Danske Bank, Fed, European Central Bank, Securities, Exchange Commission, SEC, Thomson Locations: U.S

☆ Morning Bid: Markets level, Aussie hikes, crypto judders
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +3 min

It raised interest rates by a quarter-point on Tuesday to an 11-year high and warned further tightening may be required to ensure that inflation returns to target, boosting the Aussie dollar as markets had been leaning towards a pause. Eyes will now be trained on the Bank of Canada's latest policy decision on Wednesday, with many forecasting it will resume tightening interest rates after a four-month pause. The crypto world was far from calm, with Bitcoin trying to find its feet after a 5% recoil to three-month lows on Monday. The Securities and Exchange Commission complaint listed 13 charges against Binance, Zhao and the operator of its purportedly independent U.S. exchange. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Mike Dolan, Binance, Changpeng Zhao, Zhao, Nansen, Antony Blinken, Smucker Organizations: Apple, Federal Reserve, Reserve Bank of Australia, Bank of Canada's, . U.S, Securities, Exchange, Binance, U.S, Saudi, Smucker Reuters Graphics, PMI Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, Australia, ., Saudi Arabia

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