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May 5th, gold prices strengthened on Monday, boosted by a weaker dollar, as investors waited for more clarity on trade policy between the United States and its trading partners and looked forward to the Federal Reserves policy decision later this week. Tim Waterer, chief market analyst at KCM Trade, said, "The dollar was sluggish before the Federal Reserves interest rate meeting this week, which pushed gold prices slightly higher. Before the Fed meeting, we may see gold prices continue to trade in the $3,200-3,350 range. However, any new news about the trade agreement could lead to another increase in volatility."Australian Prime Minister Albanese: Will hold talks with Indian Prime Minister Modi tomorrow.Faraday Future’s FX Models announced significant pre-order success for its FX Super One MPV, securing 300 orders in a B2B agreement.U.S. stock index futures extended losses, with Dow futures down 0.7%, S&P 500 futures down 0.8% and Nasdaq futures down about 1%.According to Tianyancha App on May 5, Xiaomi Home Commercial Co., Ltd. has recently undergone industrial and commercial changes. Lei Jun was changed from executive director to director, and the business scope was expanded to include sales of smart home consumer devices and hairdressing accessories. The company was established in June 2017, with Sun Bo as the legal representative, and a registered capital of RMB 100 million. Its business scope includes sales of communication equipment, sales of communication equipment, wholesale of computer hardware and software and auxiliary equipment, etc. It is wholly owned by Xiaomi Communication Technology Co., Ltd.

As the Fed confirms the disinflationary process, the USD/CAD exchange rate may fall to 1.3250

Alina Haynes

Feb 02, 2023 16:05

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The USD/CAD pair resumed its two-day losing run after slipping below 1.3270 in Asia. Following two days of declining US inflation, the Canadian dollar fell on Wednesday.

 

The US Manufacturing PMI (Jan) dropped for a third consecutive month to 47.4, below the consensus estimate of 48.0 and the prior reading of 48.4. The Index of New Orders for Manufactured Goods, which indicates future demand, decreased to 42.5 from 46.1 and 45.1. Fed Chairman Jerome Powell stated in his comments that consumer spending has slowed significantly and that the central bank will now focus on labor cost balance. The US Employment Cost Index (Q4) fell by 1%.

 

The US Consumer Price Index (CPI) and Producer Price Index (PPI) have decreased for three consecutive months, while economic activity and consumer spending have slowed, signaling deflation. Powell stated, "Can now for the first time announce, 'The disinflationary process has begun.'"

 

The market participants' risk appetite has raised the demand for risky assets. After a solid performance on Wednesday, S&P500 futures increased in the Asian morning. The US Dollar Index (DXY) found limits following a decline to about 100.80 amid risk-on market mood. The yield on 10-year US Treasuries has surpassed 3.41 percent.

 

Monthly GDP (Nov) data for the Canadian dollar were 0.1%, above the consensus forecast of flat. Since the Bank of Canada (BoC) ceased policy tightening after increasing interest rates to 4.50 percent, the Canadian economy has not declined on a monthly basis.

 

After plunging to nearly $76, the price of oil is recovering. Black gold dipped on Wednesday after the US Energy Information Administration (EIA) reported 4.14 million oil inventories for the week ending January 27. Because Canada is a major oil exporter to the United States, lower oil prices influence the Canadian Dollar.


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