The greenback has also benefited from demand for safe havens, paradoxically as a U.S. debt ceiling impasse threatens a disastrous default as soon as June 1, when the Treasury has warned it would be unable to pay all its bills.
Economy
Dollar ascendant amid resilient US economy, haven demand
Fitch put the United States’ “AAA” debt ratings on negative watch on Wednesday, adding to the sense of imminent crisis.
“The dollar has seen a good, solid move higher, and there’s good reasons for it,” said Tony Sycamore, an analyst at IG Markets, pointing particularly to haven demand amid the debt ceiling standoff, as well as mounting signs of slowdowns in China and Europe.
“I believe the dollar could be on the cusp of another 2% move higher, and Fitch could be the trigger for it.”
The U.S. dollar index, which measures the currency against six major peers including the euro and yen, touched a two-month high of 104.01.
The latest sign of weakness out of Europe came from a worse-than-expected deterioration in German business confidence.
Meanwhile, the Chinese yuan renewed a six-month low by dropping to 7.0827 per dollar in the offshore market.
The Asian giant has seen a cascade of disappointing economic indicators, all pointing to dull consumer demand and suggesting a post-pandemic recovery has already run its course.
Australia’s dollar has felt the impact of that China weakness acutely because of its close trade ties, edging to a fresh 6 1/2-month low of $0.6527.
The New Zealand dollar was still reeling from the central bank’s shock dovish tilt on Wednesday, which triggered a 2.2% slide. On Thursday, it pushed to the lowest since mid-November at $0.6085.
Money markets ramped back up the odds to about 1-in-3 for another quarter-point hike in June, with several Fed officials striking a hawkish posture recently with consumer inflation still running about twice the 2% target.
“Whether we should hike or skip at the June meeting will depend on how the data come in over the next three weeks,” Fed Governor Christopher Waller said on Wednesday at an event in California.
“I do not support stopping rate hikes unless we get clear evidence that inflation is moving down towards our 2% objective.”
(Reporting by Kevin Buckland; Editing by Edmund Klamann)
Economy
Minimum wage to hire higher-paid temporary foreign workers set to increase
OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.
Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.
The change is scheduled to come into force on Nov. 8.
As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.
The program has also come under fire for allegations of mistreatment of workers.
A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.
In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.
The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.
According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.
The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.
Temporary foreign workers in the agriculture sector are not affected by past rule changes.
This report by The Canadian Press was first published Oct. 21, 2024.
— With files from Nojoud Al Mallees
The Canadian Press. All rights reserved.
Economy
PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
Economy
Statistics Canada says levels of food insecurity rose in 2022
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
The Canadian Press. All rights reserved.
-
Sports19 hours ago
Forward Jade Kovacevic is the first player signing announced by Northern Super League
-
Business15 hours ago
What Difference Will You Make to an Employer?
-
News16 hours ago
Supply shortage for Ontario home care, palliative patients unacceptable: minister
-
News19 hours ago
Harris raises $633 million in the third quarter but spends heavily in final push
-
News16 hours ago
Carbon monoxide poisoning suspected in deaths of three found in car in Quebec’s Gaspé
-
Politics6 hours ago
A look at Susan Holt, Liberal premier-designate of New Brunswick
-
Sports16 hours ago
Duke’s Cooper Flagg makes preseason AP All-America team as ACC, Big 12, SEC each place 2 players
-
Sports14 hours ago
Jays reliever Green and Canadian slugger O’Neill nominated for comeback player award