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Or sign-in if you have an account.The Canadian dollar on Friday pushed past 72 cents U.S. Photo by Peter J. Thompson/National Post filesThe Canadian dollar on Friday pushed past 72 cents U.S., continuing its reversal that started in late June due to a sliding greenback as bets fade for the United States Federal Reserve to hike interest rates.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.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 Accountor“Spread compression (on interest rates) is a clear motivation for the (Canadian dollar),” Shaun Osborne, currency strategist at Bank of Nova Scotia, said in a note on Friday.After nearly falling below 70 cents U.S. in late June, the loonie has rebounded 2.6 per cent as the rate differential between the United States’ and Canada’s two-year bonds has shrunk by 25 basis points since a late July peak, helping to support the Canadian dollar.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThose short-term differentials, driven by central bank interest rate outlooks, have narrowed as markets cut back on bets for the U.S. Federal Reserve to hike.Bets for a Fed rate hike in September fell to a 30 per cent chance on Friday from about 65 per cent at the start of the month, with poor U.S. economic data driving the change.The U.S. Census Bureau on Friday said stateside retail sales fell 0.6 per cent month over month in July, the first decline since May 2025.This “should remove any threat of a Fed rate hike, now and in the near future,” David Rosenberg, president of Rosenberg Research & Associates Inc., said in a note on Friday.Other economic data impacting Fed rate hike bets include U.S. inflation in July, which cooled year over year, and a slowing labour market. Both of those metrics, Osborne said, should allow Fed chair Kevin Warsh “to keep the hawks (those calling for hikes) at bay.”As bets for U.S. hikes fade, bets on Bank of Canada rates are holding relatively steady at the toss of a coin for a hike in December.Osborne said the Canadian dollar is also among those currencies catching a wind on Friday from commodities, several of which were “sitting at or near the top of the intraday performance table” for Group of 10 currencies.There could be more upside for the loonie as the trends line up against the greenback, potentially pushing the Canadian dollar as high as 72.4 cents U.S., with a range of 73 cents U.S. to 74 cents U.S. a possibility, he said.One near-term hurdle, however, is the Aug. 19 deadline for the imposition of new U.S. tariffs of 50 per cent on a variety of Canadian goods.Luis Hurtado, executive director of Latin American fixed income, currency and commodities at CIBC Capital Markets, said in a note on Friday that currency markets currently remain “impervious” to the “noise” around the date and “are waiting for concrete action.”Headlines currently point to a possible concession or an agreement, he said.CIBC is calling for the Canadian dollar to close out the year at 73 cents U.S. “as U.S. data continues to cool.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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