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Fitch: Canada Pension Plans (CPPPs) are expected to perform strongly in bond issuance in 2025; a good start to 2026 is anticipated.Goldman Sachs: By late 2026, ore supply is expected to recover to around 300 million tons following supplemental approvals in Indonesia, resulting in a resurgence of a surplus of approximately 191,000 tons in the refined nickel market.Goldman Sachs: Indonesias ore supply is expected to decline by 11% year-on-year to 260 million tons in the first half of this year, which will tighten the refining market and support nickel prices to rise to $18,700 per ton in the second quarter of 2026.Hang Seng Index futures closed down 0.85% at 26,590 points in overnight trading, a discount of 245 points.On February 4th, Intel (INTC.O) CEO Chen Liwu stated that the memory chip shortage in the computer industry is likely to persist for at least two years. He said on Tuesday, "To my knowledge, there are currently no mitigation measures." Chen Liwu said he spoke with two key figures in the memory industry who told him, "There wont be any relief until 2028." The massive construction of artificial intelligence infrastructure has significantly increased the demand for memory chips, leading to a reduction in the supply of chips available for traditional computers and smartphones. This has resulted in chip shortages and price increases—which could dampen consumer willingness to purchase these products. Chen Liwu also pointed out that Nvidia, as a leading supplier of AI processors, will further drive up memory demand with its latest Rubin platform and next-generation products, as artificial intelligence will "consume a lot of memory."

As Investors Anticipate a 25 Basis Point Fed Rate Hike, USD/CAD Corrects To Near 1.3700

Daniel Rogers

Mar 22, 2023 15:17

USD:CAD.png 

 

The USD/CAD pair is evidencing a corrective movement after failing to sustain a recovery above 1.3740 during the Asian session. Following a decline in Canada's inflation data, the Canadian dollar rebounded strongly from Monday's level of 1.3660. The falling Canadian Consumer Price Index (CPI) data confirmed that the Bank of Canada (BoC) could maintain its current policy stance.

 

Governor Tiff Macklem of the Bank of Canada maintains the status quo because he believes that the monetary policy is sufficiently restrictive to achieve price stability. However, BoC Macklem has left the door open for additional increases if the plan for reducing inflation fails.

 

Statistics Canada reported that the monthly inflation rate has increased by 0.4%, which is less than both the consensus estimate of 0.6% and the previous release of 0.5%. The headline CPI declined from 5.4% (consensus) and 5.8% to 5.2%. (previous release). The annual core CPI, which excludes the costs of fuel and food, decreased to 4.7% from 5.0%, but remained above the 4.4% forecast. The Bank of Canada, which has already increased interest rates to 4.5%, found the overall decline in inflation to be quite impressive.

 

In the interim, S&P500 futures are performing unfavorably after two days of intense buying. The odds favor the Federal Reserve increasing interest rates by 25 basis points (bps) for the second consecutive meeting. (Fed). As concerns of banking sector turmoil persist, the US Dollar Index (DXY) struggles to maintain its position above 103.20. In addition, analysts from UBS believe that tighter credit standards, economic contraction, and falling inflation could prompt the Fed to reduce interest rates this year.


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