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On May 14, Iranian Foreign Minister Araqchi stated that there is no military solution to the Iranian issue, and the Iranian people will never succumb to any threats or pressure. Araqchi also stated that Iran is prepared to fight to defend its freedom and territory, and is also prepared to continue resolving the issue through diplomatic channels.May 14th - The peak summer grain procurement season for 2026 is about to begin. Recently, ten departments, including the National Development and Reform Commission and the National Food and Strategic Reserves Administration, jointly issued a notice requiring the smooth operation of the 2026 grain procurement work. Through measures such as strengthening the overall organization of grain procurement, reinforcing the implementation of grain procurement policies, and continuously optimizing procurement services, the notice aims to ensure smooth channels for farmers to sell their grain and maintain the stable operation of the grain market. During this years summer grain procurement period, the state will continue to implement the minimum purchase price policy in major producing areas, adhering to a dual-drive approach of "market-led and policy-supported." Central state-owned enterprises such as China Grain Reserves Corporation (Sinograin) and COFCO will take the lead in entering the market and remain actively involved, improving service efficiency through "online appointments + offline procurement" to ensure that "money and warehouses are ready for grain," thus guaranteeing farmers income.Indian government data shows that the fuel price index in the wholesale price index rose 24.71% year-on-year in April.On May 14th, Jozsef Varadi, CEO of European low-cost carrier Wizz Air, stated that despite the impact of the conflict in Iran, the company expects revenue to increase by 2% year-on-year during the crucial summer travel season, thanks to its low fares attracting a large number of passengers and helping to offset the impact of the conflict. Varadi noted, "For the summer peak season, we have not only seen an increase in passenger volume but also observed an increase in revenue." This forecast sends a positive signal at a time when the air travel market is struggling with soaring fuel prices and concerns about declining passenger numbers.Iranian Foreign Minister Araqchi: Tehran calls on BRICS members to unequivocally condemn the aggression against Iran by the United States and Israel.

USD/CAD declines to 1.3500 on firmer Oil prices, BoC concerns over US inflation, and Fed Minutes

Daniel Rogers

Apr 10, 2023 14:35

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The USD/CAD maintains losses close to 1.3500, shattering a four-day winning trend, as traders brace for key Easter Monday data/events on major bourses. However, the recent decline in the Loonie-U.S. dollar exchange rate may be due to the increase in the price of WTI petroleum oil, Canada's primary export. In contrast to the recent increase in ardent Fed forecasts, the Bank of Canada's (BoC) dovish bias poses a challenge to pair sellers.

 

After increasing for three consecutive weeks, WTI crude oil prices gain 0.61 percent intraday near $80.00. Recent increases in the price of black gold may be due to geopolitical concerns surrounding China and Taiwan. In addition to the supply cut by OPEC+ and the faltering US dollar, the energy benchmark is sustained by the supply cut by OPEC+ and the weakening US dollar.

 

However, the US Dollar Index (DXY) has fallen for three consecutive weeks and is under pressure near 102,000.

 

Fears of higher Fed rates versus inaction from the Bank of Canada (BoC) grew after the upbeat US Jobs report versus the lack of significant positives in the March Canadian jobs report.

 

As a result, the CME's FedWatch Tool indicates a 69% chance of a 0.25 basis point rate hike in May, up from 55% prior to the US employment report.

 

Canada's headline Net Change in Employment increased to 34.7K in March from 21.8K in February, compared to the market consensus of 12K, while the Unemployment Rate came in at 5% versus the analysts' estimate of 5.0%. During the specified month, the Participation Rate decreased to 65.6% from the expected and previous rate of 65.7%. In addition, the average hourly wage fell 5.2% year-over-year in March, down from 5.5% in February.

 

In contrast, the US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) increased by 236K in March, the lowest increase since January 2021 (considering revisions), compared to the expected 240K and the previous 330,000. Additionally, the unemployment rate fell from 3.6% to 3.5%, while the labor force participation rate rose from 62.6% to 62.6%. The annual wage inflation rate decreased from 4.6% to 4.2%, below market expectations of 4.3%.

 

Futures on US equities ended higher, but yields remain under pressure ahead of the crucial BoC monetary policy meeting, US inflation, and Fed Minutes. Given the dovish concerns from the Bank of Canada (BoC) and the likely hawkish comments in the FOMC Minutes, the USD/CAD may see additional gains, barring any unexpected developments.


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