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On March 7th, Emirates Airlines issued a statement saying that all flights to and from Dubai have been suspended, and the resumption time will be announced later. The statement advised passengers not to go to the airport, and Emirates Airlines will release updates as soon as they become available. Shortly afterward, Dubai International Airport announced that it had suspended operations to ensure the safety of passengers, airport staff, and crew. Earlier that day, an explosion was heard at Dubai International Airport, and some passengers in the terminal were asked to evacuate to the underground level for safety. It is reported that an interception operation was carried out over Dubai Airport.On March 7th, Yuan Da, Secretary-General of the National Development and Reform Commission, stated at a press briefing held by the State Council Information Office that the 15th Five-Year Plan period is a crucial period for accelerating the comprehensive green transformation of economic and social development. In implementing the concept of green development, low-carbon requirements are given greater emphasis. First, it clearly proposes to take carbon peaking and carbon neutrality as the driving force, and synergistically promote carbon reduction, pollution reduction, greening, and growth. Second, it fully implements dual control over total carbon emissions and intensity. It should be noted that the shift from dual control of energy consumption to dual control of carbon emissions does not mean a relaxation of energy conservation efforts. Energy conservation remains the most direct, economical, and effective way to reduce carbon emissions.On March 7th, Zheng Bei, Vice Chairman of the National Development and Reform Commission, stated at a press briefing held by the State Council Information Office that the draft outline of the 15th Five-Year Plan has added an indicator for the proportion of nursing care beds in elderly care institutions, guiding these institutions to provide more high-quality nursing services and better meet the care needs of disabled and cognitively impaired elderly people. Simultaneously, an indicator for increasing the enrollment rate of infants under 3 years old in childcare facilities has been set, comprehensively reflecting the degree to which childcare needs are met and enhancing the publics sense of gain.On March 7, Zheng Bei, Vice Chairman of the National Development and Reform Commission, stated at a press briefing held by the State Council Information Office that the draft outline of the 15th Five-Year Plan has four key characteristics: First, in terms of planning and positioning, it emphasizes building on past achievements and laying a solid foundation for future development, while also focusing on comprehensive efforts. Second, in terms of development orientation, it closely adheres to high-quality development, emphasizing structural optimization and quality improvement. Third, in terms of task arrangement, it strengthens practicality and effectiveness, focusing on precision, efficiency, and strong support. Fourth, in terms of value orientation, it upholds the principle of putting people first, emphasizing tangible results and effectiveness.Iranian President Pezechzian: We have no hostility toward countries in the Gulf region.

As Oil Bears Take a Break and Focus on the Federal Reserve and Geopolitics, USD / CAD Reverses from a Multi-Day High

Alina Haynes

Feb 23, 2023 14:57

USD:CAD.png 

 

As it reverses from a seven-week high marked the day before on Thursday morning, USD/CAD accepts offers to reestablish the intraday low near 1.3540. Consequently, the Loonie pair suffers its first daily loss in three days, amidst market consolidation and cautious optimism.

 

Nevertheless, the absence of Japanese traders due to the Tokyo holiday has joined the previous decline in US Treasury bond yields and a decline in US inflation expectations to influence the most recent USD/CAD exchange rate. The 10-year and 5-year breakeven inflation rates from the Federal Reserve Bank of St. Louis (FRED) indicate a decline in US inflation expectations by falling from the multi-day high.

 

On a similar trajectory, Canada's primary export commodity, WTI petroleum oil, may experience a reversal. The black gold fell to a 13-day low after losing nearly 3.0% the previous day due to lackluster US inventories and a strong US Dollar. However, as of press time, the energy benchmark has posted modest gains and is trading near $74,00.

 

Despite recent market consolidation, USD / CAD buyers remain optimistic due to hawkish Federal Reserve (Fed) and geopolitical concerns.

 

In terms of geopolitics, US President Joe Biden believes that his Russian counterpart is incapable of using nuclear weapons by renouncing an international treaty. The most recent round of negotiations between the West and China has exacerbated the Ukraine-Russia conflict, which has yet to dispel the concerns surrounding it. The Wall Street Journal (WSJ) reported recently that the United States is considering releasing intelligence on China's prospective arms transfer to Russia. Previously, China-Russia relations appeared to have exacerbated geopolitical tensions, as the United States strongly condemned such actions and favored a surge towards risk aversion, which favored the US Dollar.

 

In a separate section of the most recent Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes, all participants agreed that additional rate increases are necessary to achieve the inflation target, while also favoring further Fed balance sheet reductions. James Bullard, president of the Federal Reserve Bank of St. Louis, told Reuters that the Fed will need to raise interest rates above 5% to combat inflation. The policymaker also stated that he believes there is a good possibility they will be able to beat inflation this year without causing a recession. In addition, according to Reuters, John Williams, president of the Federal Reserve Bank of New York, emphasized the concerns supporting the Fed's higher interest rates by stating, "Fed is utterly committed to getting inflation back to 2%."

 

US Treasury bond yields are inactive after retreating from a multi-day high, while Wall Street closed neutral and the S&P 500 Futures are modestly bid as of late.

 

The second estimates of the US Personal Consumption Expenditures (PCE) data for the fourth quarter (Q4) and the preliminary readings of the US Q4 Gross Domestic Product (GDP) will be crucial for providing USD / CAD traders with new information in the near future.


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