Financial Markets Daily Summary - August 3, 2018
Core Content Overview
This report provides a detailed overview of interest rates, foreign exchange (FX) rates, and cross currency rates in the North American and global financial markets as of August 3, 2018. It includes comparisons of current rates with those from the previous week and four weeks ago, highlighting trends and spreads.
Interest Rates (North America)
| Term |
Canada |
U.S. |
Spread (Canada - U.S.) |
| Three-month |
1.44 |
2.01 |
-0.57 |
| Six-month |
1.60 |
2.21 |
-0.61 |
| Two-year |
2.10 |
2.68 |
-0.58 |
| Three-year |
2.15 |
2.77 |
-0.62 |
| Five-year |
2.26 |
2.86 |
-0.60 |
| 10-year |
2.36 |
2.99 |
-0.64 |
| 30-year |
2.38 |
3.12 |
-0.75 |
- Trends: Canadian interest rates across all maturities have remained relatively stable compared to the previous week, with only minor changes. U.S. rates have also seen slight increases.
- Spreads: The spread between Canadian and U.S. rates has narrowed slightly for most terms, indicating a convergence in rate expectations.
Foreign Exchange Rates (August 3, 2018)
| Currency Pair |
Today |
Week Ago |
Four Weeks Ago |
| US/CAD |
0.76929 |
0.76611 |
0.76441 |
| US/EUR |
1.1599 |
1.1658 |
1.1747 |
| US/GBP |
1.3021 |
1.3105 |
1.3286 |
| JPY/US |
111.485 |
111.045 |
110.46 |
| MXN/US |
18.651 |
18.628 |
19.028 |
| CHF/US |
0.9946 |
0.9945 |
0.9899 |
| US/AUD |
0.7398 |
0.7402 |
0.7434 |
| CNY/US |
6.8295 |
6.8255 |
6.6511 |
| US/NZD |
0.6757 |
0.6790 |
0.6841 |
| Silver |
15.47 |
15.50 |
16.04 |
| Gold |
1214 |
1223.4 |
1255 |
- USD/CAD: The Canadian dollar weakened slightly against the U.S. dollar, with a spread of -0.75% compared to four weeks ago.
- USD/EUR: The euro appreciated slightly against the U.S. dollar.
- USD/GBP: The British pound strengthened against the U.S. dollar.
- USD/JPY: The Japanese yen weakened against the U.S. dollar.
- USD/MXN: The Mexican peso weakened against the U.S. dollar.
- USD/CHF: The Swiss franc weakened slightly against the U.S. dollar.
- USD/AUD: The Australian dollar weakened against the U.S. dollar.
- USD/CNY: The Chinese yuan weakened against the U.S. dollar.
- USD/NZD: The New Zealand dollar weakened against the U.S. dollar.
- Silver & Gold: Silver and gold prices showed slight declines compared to the previous week and four weeks ago.
Cross Currency Rates (August 3, 2018)
| Currency |
USD |
CAD |
EUR |
MXN |
JPY |
GBP |
CHF |
AUD |
| USD |
1.0 |
0.7693 |
1.1599 |
0.053617 |
0.00897 |
1.3021 |
1.00548 |
0.7398 |
| CAD |
1.2999 |
1.0 |
1.5078 |
0.0697 |
0.0117 |
1.6926 |
1.3070 |
0.9617 |
| EUR |
0.8621 |
0.6632 |
1.0 |
0.0462 |
0.0077 |
1.1226 |
0.8669 |
0.6378 |
| MXN |
18.6508 |
14.3478 |
21.6330 |
1.0 |
0.1673 |
24.2851 |
18.7530 |
13.7978 |
| JPY |
111.49 |
85.76 |
129.31 |
5.98 |
1.0 |
145.16 |
112.10 |
82.48 |
| GBP |
0.7680 |
0.5908 |
0.8908 |
0.0412 |
0.0069 |
1.0 |
0.7722 |
0.5682 |
| CHF |
0.9946 |
0.7651 |
1.1536 |
0.0533 |
0.0089 |
1.2950 |
1.0 |
0.7358 |
| AUD |
1.3517 |
1.0399 |
1.5679 |
0.0725 |
0.0121 |
1.7601 |
1.3591 |
1.0 |
- USD/CAD: The Canadian dollar weakened against the U.S. dollar.
- USD/EUR: The euro appreciated against the U.S. dollar.
- USD/GBP: The British pound strengthened against the U.S. dollar.
- USD/JPY: The Japanese yen weakened against the U.S. dollar.
- USD/MXN: The Mexican peso weakened against the U.S. dollar.
- USD/CHF: The Swiss franc weakened against the U.S. dollar.
- USD/AUD: The Australian dollar weakened against the U.S. dollar.
- CAD/EUR: The euro appreciated against the Canadian dollar.
- CAD/GBP: The British pound strengthened against the Canadian dollar.
- EUR/GBP: The British pound strengthened against the euro.
- MXN/JPY: The Japanese yen weakened against the Mexican peso.
- JPY/GBP: The British pound strengthened against the Japanese yen.
Forward Exchange Rates (August 3, 2018)
| Currency |
Spot |
One-month |
Three-month |
Six-month |
One-year |
Two-year |
Three-year |
Four-year |
Five-year |
| C$ |
1.2999 |
1.2993 |
1.2980 |
1.2961 |
1.2926 |
1.2865 |
1.2834 |
1.2797 |
1.2778 |
| Euro* |
1.1599 |
1.1623 |
1.1678 |
1.1771 |
1.1962 |
1.2363 |
1.2737 |
1.3074 |
1.3389 |
| Yen |
111.485 |
111.2633 |
110.7782 |
109.9345 |
108.2412 |
104.5918 |
101.0150 |
97.6000 |
94.3620 |
| UK pound* |
1.3021 |
1.3036 |
1.3070 |
1.3131 |
1.3251 |
1.3497 |
1.3721 |
1.3917 |
1.4097 |
| US$ |
0.7693 |
0.7696 |
0.7704 |
0.7716 |
0.7736 |
0.7773 |
0.7792 |
0.7814 |
0.7826 |
| Euro* |
1.5078 |
1.5102 |
1.5158 |
1.5255 |
1.5463 |
1.5904 |
1.6346 |
1.6731 |
1.7108 |
| Yen |
85.7643 |
85.63 |
85.35 |
84.82 |
83.74 |
81.30 |
78.71 |
76.27 |
73.85 |
| UK pound* |
1.6926 |
1.6938 |
1.6965 |
1.7019 |
1.7129 |
1.7364 |
1.7609 |
1.7810 |
1.8014 |
- Forward rates indicate that the Canadian dollar is expected to weaken against the U.S. dollar over the next few years.
- Euro: The euro is expected to strengthen against the U.S. dollar and other currencies.
- Yen: The Japanese yen is expected to weaken significantly against the U.S. dollar and other major currencies.
- UK pound: The British pound is expected to strengthen against the U.S. dollar and other currencies.
- Forward trends suggest a gradual appreciation of the euro and UK pound, and depreciation of the yen and Canadian dollar relative to the U.S. dollar.
Key Information
- Interest Rates: Canadian rates are lower than U.S. rates across all maturities, with spreads narrowing slightly.
- FX Rates: The Canadian dollar weakened against the U.S. dollar, while the euro and UK pound strengthened.
- Forward Rates: The Canadian dollar is expected to weaken further, and the yen is projected to depreciate significantly.
- Disclaimer: The data is provided by RBC Economics Research and is based on reliable sources. No guarantees are made regarding accuracy or completeness.
