EUR/USD 1.17049
-0.039%
Gold 3649.14
0.630%
Oil 62.942
0.707%
USD/JPY 147.477
0.053%
GBP/USD 1.35348
0.059%
GBP/JPY 199.611
0.118%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
TD COWEN: Raised Oracle (ORCL.N) target price to $375, from $325 previously.On September 10th, Fitch Ratings raised its global GDP growth forecast on Tuesday, while noting a slowdown in the US economy and job market. However, compared to last years data, global economic growth is expected to slow "significantly" this year. Global growth is expected to slow to 2.4% this year from 2.9% last year, and to slow further to 2.3% next year, before expanding to 2.6% in 2027. Furthermore, Fitch stated that uncertainty surrounding US tariff policy has decreased following a series of announcements. However, Chief Economist Brian Coulton noted, "Greater clarity regarding US tariff increases does not change the fact that they remain substantial and will weaken global growth. And signs of a US economic slowdown are now appearing in hard data, not just sentiment surveys." Fitch noted that the rise in inflation from the tariff increase is "modest" but is expected to accelerate later this year. "Higher inflation will dampen real wage growth and weigh on US consumer spending, which has already slowed noticeably in 2025." Meanwhile, US job growth has slowed "noticeably," and the weakening labor market should persuade the Federal Reserve to cut interest rates sooner than previously anticipated. Fitch currently expects the Fed to cut interest rates by 25 basis points at its September and December meetings, and three more rate cuts next year.S&P 500 and Nasdaq 100 futures continued to rise to intraday highs.Swiss National Bank President Schlegel: The Swiss National Bank will publish a summary of its quarterly decision four weeks after its quarterly policy decision.Swiss National Bank President Schlegel: The Swiss National Bank will also publish the presentations of speeches at related events.

USD/CAD Falls Towards 1.2800 Oil Rises Despite Hawkish FOMC Minutes

Alina Haynes

May 26, 2022 09:44

After failing to surpass 1.2820 during the Asian session, the USD/CAD pair has experienced a dramatic decline. The pair is targeting a drop below 1.2800 as market investors have abandoned the US dollar index (DXY) despite Wednesday's release of exceptionally hawkish Federal Open Market Committee (FOMC) minutes.

 

The FOMC minutes indicated that all FOMC members supported a 50 basis point (bps) increase in policy rates, which suggests that a sustained environment of policy tightening is imminent. Fed policymakers feel that the U.S. economy requires more massive rate rises because inflation is soaring and the job market is highly tight. Therefore, the necessity to return to neutral rates is really urgent. In addition, the Fed estimates neutral rates to be at 2.9%.

 

In the meantime, oil prices have surpassed the key resistance level of $110.00 as speculators anticipate a rebound in aggregate demand. The Chinese administration will shortly lift restrictions on the movement of people, commodities, and machinery in Shanghai, China, following a two-month lockdown. Notably, China is the largest importer of oil, and the revival of demand in China is sufficient to encourage oil bulls.

 

Traders should be aware that Canada is the major exporter of oil to the United States and that rising oil prices will result in a greater influx of capital into the Canadian dollar region.

USD/CAD

image.png 


Suggestion