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Or sign-in if you have an account.The Canadian dollar has had a tumultuous 2026. Photo by Shannon VanRaes /BloombergSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorIt looks like the Canadian dollar has turned away from falling below 70 cents U.S., even after the United States declined to renew the Canada-U.S.-Mexico Agreement (CUSMA), kick-starting annual reviews of the three-way pact.The loonie came perilously close to breaching that threshold as June wound down, but pulled back from the ledge to continue posting tentative gains on Thursday after falling to a year-to-date low of 70.26 cents U.S. on June 24.“In theory, the decision (on CUSMA) adds to the headwinds facing the loonie from a weak economy, falling oil prices and a neutral Bank of Canada,” Karl Schamotta, chief market strategist at Corpay, a corporate payments company, said in a note on Thursday. “But the move was well telegraphed, and may already be priced in, suggesting the risk profile facing the currency may not be as negative as some have suggested.”Breaking business news, incisive views, must-reads and market signals. 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Please try againIt has been a tough year for the Canadian dollar, which is down just over three per cent from the start of year and off nearly five per cent from the closing high of 74 cents U.S. reached on Jan. 29.The loonie has faced several headwinds including a global flight to the U.S. dollar, due partly to investors seeking safety after the break out of the Iran conflict.Data from the International Monetary Fund indicated that official currency reserves of the U.S. dollar rose in the first quarter of 2026 and “by no little bit,” Warren Lovely, chief rates strategist at National Bank of Canada, said in a report on Thursday.Lovely said the buying coincided with the war in Iran, but that the longer de-dollarization trend is probably still intact.Canada’s currency also suffered as bets rose that the U.S. Federal Reserve would need to hike interest rates to combat oil-induced inflation from the war. That caused the yield on Canadian and U.S. bonds to widen further in favour of Treasuries leaving the greenback much more attractive to investors.On Thursday, that dynamic eased slightly in favour of the loonie as the U.S. Bureau of Labor Statistics reported just over 57,000 positions were created in June, well off estimates for 113,000 additions to the jobs market. Meanwhile, numbers for April and May were also revised lower, adding up to a two-month loss of almost 75,000 jobs.In the wake of the data release, bets for a rate hike at the July 29 Fed meeting weakened to an 18 per cent chance from a nearly 30 per cent chance, while markets cut the odds of an increase in September to around 60 per cent from 80 per cent, according to overnight interest rate swap data from Bloomberg. However, markets were still all in on a hike in October.That could ramp up the pressure on the loonie as it would widen the interest rate differential between the Fed and the Bank of Canada, which has been on hold for the last five consecutive rate calls, with most economists expecting it to stay the course at the current level of 2.25 per cent well into 2027.“We don’t think that easier policy is at all likely, but we too are unconvinced that hikes will materialize,” rates strategist Taylor Schleich and rates analyst Vy Le at the National Bank of Canada, said in a note on June 29. “If our projection bears out, the Canadian dollar may be able to find some traction after rate differentials — along with oil and gold — have weighed on it lately.”However, Sarah Ying, head of currency strategy at CIBC Capital Markets’ fixed income, commodity and currency unit, warned in a note Thursday that despite “a well-anticipated” outcome of the July 1 CUSMA review, more friction could lie ahead for the loonie, especially around Rules of Origin that call for more U.S. content in manufactured goods.“For now, the Canadian dollar remains predominantly driven by the U.S. dollar leg,” she said. Sign up here to get Posthaste delivered straight to your inbox.Canada has long been a hotbed for quantum computing even if Canadian comedian Rick Mercer doesn’t know what it is.“I have no idea what a quantum is, but I know we’re crushing it,” Mercer said in a Business Development Bank of Canada television ad, promoting the country’s prowess in the futuristic technology.But Mercer — and others — may know soon. The markets dubbed 2025 the year of quantum following a string of breakthroughs that turned even Nvidia Corp. chief executive Jensen Huang into a quantum bull and ignited a wave of investor interest and public listings, including one by Toronto-based Xanadu Quantum Technologies Inc. — Yvonne Lau, Financial PostKeep reading here.U.S. markets closed for July 4 long weekendThis 37-year-old has about $1 million in assets and earns roughly $170,000 a year. He rents and doesn’t want to own property since he moves around to advance his career. He would like to set himself up to be able to retire comfortably in 10 to 15 years, but worries the lopsidedness of his savings in a hefty RRSP is going to make it more difficult. Find out what FP Answers has to say.Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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