2025-03-28 18:52
Loonie trades in a range of 1.4277 to 1.4333 Posts weekly gain of 0.2% Canadian GDP rises 0.4% in January Bond yields ease across the curve March 28 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday but held on to a weekly gain as investors weighed disappointing U.S. economic data and awaited the next round of Washington's trade tariffs. The loonie weakened 0.1% to 1.4315 per U.S. dollar, or 69.86 U.S. cents, after moving in a range of 1.4277 to 1.4333. Sign up here. For the week, the loonie was up 0.2%, its fourth straight weekly gain, as investors bet the U.S. economy would be unable to escape damage from an expanding global trade war. U.S. consumer spending rebounded less than expected in February while a measure of underlying prices increased by the most in 13 months, stoking fears the economy was facing a period of tepid growth and high inflation. The data was "underwhelming" and helped cap declines for the Canadian dollar, said Tony Valente, a senior FX dealer at AscendantFX. "Having said that, I don’t expect much more movement in the currency until we find out what the reciprocal tariffs are all about next week," Valente added. U.S. President Donald Trump plans to unveil on April 2 a sweeping agenda of reciprocal tariffs, after announcing on Wednesday a 25% tariff on imported vehicles. Autos rank only behind oil among Canada's largest exports. Trump and Canadian Prime Minister Mark Carney had a conversation on Friday that both men described as productive, although Carney said Ottawa would be imposing retaliatory tariffs next week as promised. Canada's gross domestic product grew by 0.4% on a monthly basis in January, continuing the economic momentum of the last few of months, but a preliminary estimate for February was less upbeat, showing no change in the level of activity. The price of oil fell 0.8% as traders worried about the risk of a global recession. Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 7 basis points at 3.027%. https://www.reuters.com/markets/currencies/canadian-dollar-posts-fourth-straight-weekly-gain-us-data-underwhelms-2025-03-28/
2025-03-28 18:51
US gas output on track to hit monthly record in March US LNG export feedgas set to hit monthly record in March US gas inventories on track for rare build in March March 28 (Reuters) - U.S. natural gas futures climbed about 3% to a one-week high on Friday on record flows to liquefied natural gas export plants and a decline in daily output. On its first day as the front month, gas futures for May delivery on the New York Mercantile Exchange rose 11.5 cents, or 2.9%, to settle at $4.065 per million British thermal units, their highest close since March 19. Sign up here. For the week, the contract was up about 2% after sliding about 3% in the prior week. Mild weather and low demand through mid-April should allow utilities to keep adding gas to storage in coming weeks with some analysts saying stockpiles were on track to increase in March for the first time since 2012 and only the second time in history. Gas stockpiles, however, were still about 5% below normal levels for this time of year after extremely cold weather in January and February forced energy firms to pull large amounts of gas out of storage, including record amounts in January. Mild weather and ample hydropower in the U.S. West caused spot power prices at the South Path 15 (SP-15) hub in Southern California to turn negative for the first time since June 2024. Power prices at SP-15 first fell into negative territory in 2024, averaging below zero on 18 days last year, according to data from financial firm LSEG going back to 2001. Next-day prices at SP-15 fell to minus $5.23 per megawatt hour. That compares with an average of $28.05 so far in 2025, $31.30 in 2024 and an average of $58.87 during the prior five years (2019-2023). At the Mid-Columbia hub in Oregon, meanwhile, next-day power prices dropped to $6.57 per MWh, their lowest since May 2023. SUPPLY AND DEMAND Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 106.0 billion cubic feet per day so far in March from a record 105.1 bcfd in February. On a daily basis, however, output was on track to drop about 2 bcfd over the past four days to a preliminary one-week low of 105.2 bcfd on Friday. Traders noted preliminary data was often changed later in the day. Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through April 12. LSEG forecast average gas demand in the Lower 48, including exports, will slide from 108.5 bcfd this week to 102.9 bcfd next week before edging up to 103.3 bcfd in two weeks. The forecasts for this week and next were lower than LSEG's outlook on Thursday. Gas flowing to the eight big operating U.S. LNG export plants rose to an average of 15.8 bcfd so far in March, from a record 15.6 bcfd in February, as new units at Venture Global's (VG.N) , opens new tab 3.2-bcfd Plaquemines LNG plant under construction in Louisiana entered service. The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine. Gas traded around $13 per mmBtu at both the Dutch Title Transfer Facility (TTF) benchmark in Europe and the Japan Korea Marker (JKM) benchmark in Asia. https://www.reuters.com/business/energy/us-natgas-prices-steady-record-lng-flows-offset-record-output-2025-03-28/
2025-03-28 18:27
March 28 (Reuters) - Venezuelan state-run oil firm PDVSA will cut office hours for its administrative workers, an internal document seen by Reuters showed, following an energy-saving order by the government amid a worsening power crisis. The administration of President Nicolas Maduro announced on Sunday that government offices would cut their hours to half as reduced generation of hydro electricity and a lack of enough fuel to feed thermoelectric plants was leading to longer power cuts in some regions. Sign up here. As part of the government's plan, PDVSA told employees in an internal note on Friday to work from administrative offices three times a week and work from home the remaining days until further notice, aiming to reduce the company's power consumption. "We order all vice presidencies, executive divisions and administrative offices to implement the energy saving plan in a progressive and coordinated way," the document says, adding that operational areas to produce oil and gas, refineries and trading activities would not be affected. The South American country, which in the last decades has faced episodes of severe fuel scarcity and power crisis, is bracing for the possibility of more severe measures by the United States following the imposition of secondary tariffs to importers of Venezuelan oil this week. https://www.reuters.com/business/energy/venezuelas-pdvsa-cut-office-hours-power-crisis-worsens-2025-03-28/
2025-03-28 18:15
SAO PAULO/BRASILIA, March 28 (Reuters) - Brazil's unemployment rate rose in the quarter through February as more people actively looked for jobs, official data showed on Friday, with analysts pointing to a still tight labor market as job creation last month exceeded forecasts. Unemployment in Latin America's largest economy hit 6.8% in the three months through February, statistics agency IBGE said, up from the 6.1% registered in the previous rolling quarter and matching economists' expectations in a Reuters poll. Sign up here. It was the highest reading since the three months up to July 2024. On the other hand, Brazil created in February 431,995 formal jobs, separate data from the labor ministry showed, far exceeding the 250,000 expected in a Reuters poll. The figure also followed a much stronger-than-expected performance recorded in January. "While there was a slowdown in job creation at the turn of the year, Brazil’s labor market remains just as tight as it was six months ago," economists at JPMorgan said in a note to clients. According to IBGE's household surveys coordinator Adriana Beringuy, the increase in the jobless rate followed a seasonal pattern of the survey. "(There is a) tendency of expansion in job seeking during the months of the first quarter of each year," she said in a press release. Brazil's jobless rate in recent quarters had fallen to historic lows, data cheered by the government but also cited by the central bank as a factor in its interest rate hikes amid increased consumer prices. The central bank raised interest rates last week by 100 basis points to 14.25% - a level not seen since 2016 - and signaled a smaller increase to come in May. In recent weeks, a string of economic indicators has shown signs of a slowdown in the Brazilian economy but the central bank said this month it was still too early to establish a clear trend, as some mixed data continue to emerge. https://www.reuters.com/world/americas/brazils-jobless-rate-rises-68-quarter-through-february-2025-03-28/
2025-03-28 17:15
WASHINGTON, March 28 (Reuters) - Another U.S. bank regulator has announced that banks do not need to receive advance permission to engage in some crypto-related activities. The Federal Deposit Insurance Corporation announced Friday that banks can engage in legally permitted activities, including those that involve cryptocurrency, without receiving prior regulatory approval and so long as they manage their risks appropriately. Sign up here. The move reverses previous FDIC policy, which required banks to clear any crypto activities in advance. "The FDIC is turning the page on the flawed approach of the past three years," said acting FDIC Chairman Travis Hill in a statement, adding there will be additional moves in the future to clarify banks' engagement with crypto products and services. The FDIC's move comes after another bank regulator, the Office of the Comptroller of the Currency, similarly moved to clear the way for banks to move into the crypto sector. https://www.reuters.com/business/finance/fdic-says-banks-can-engage-crypto-activities-without-prior-approval-2025-03-28/
2025-03-28 17:05
Bank of Ghana raises rate by 100 basis points Governor says MPC majority voted for rate hike Says elevated consumer inflation remains a concern ACCRA, March 28 (Reuters) - Ghana's central bank on Friday raised its main interest rate (GHCBIR=ECI) , opens new tab by 100 basis points to 28%, saying the impact of the rate hike on consumer inflation will be reassessed before the next rate meeting in May. The rate hike was unexpected by many observers. A majority of economists polled by Reuters this week had forecast the central bank to hold rates steady, citing high inflation and forex weakness. Sign up here. However, the bank carried out its first interest rate increase since July 2023, saying a tight stance was needed to lower inflation. "The committee decided to raise the monetary policy rate by 100 basis points to 28%," new central bank governor Johnson Asiama said during a news conference, adding that the decision was taken by a majority of the members of the bank's monetary policy committee. "While headline inflation has declined marginally, it remains a concern. Both food and non-food inflation are significantly above expectation and core inflation remains elevated," he added. Consumer price inflation slowed to 23.1% in February from 23.5% in January due to an easing in food and non-food prices. It remains well above the Bank of Ghana's targets of 8% with a margin of error of 2 percentage points. "As inflation becomes firmly anchored... the committee will reassess the scope for a gradual easing in the policy stance," Asiama said. At the opening of the five-day monetary policy committee meeting on Monday, his first since being appointed as the bank's new governor, Asiama said inflation was still uncomfortably high. "This is a surprise move that suggests a more hawkish stance against inflation than has recently been apparent. I expect markets to find it reassuring, even though households and firms will be disappointed," said Leslie Dwight Mensah, economist and research fellow at the Institute for Fiscal Studies. The gold, oil, and cocoa-producing West African nation is recovering from its most severe economic crisis in decades, facing challenges in its critical cocoa and gold industries. Finance Minister Cassiel Ato Forson said during his budget speech this month that steep spending cuts would allow Ghana to drive down inflation to 11.9% by the end of the year. https://www.reuters.com/markets/rates-bonds/ghana-central-bank-raises-policy-rate-by-100-basis-points-28-2025-03-28/
