EUR/USD 1.16445
0.182%
Gold 4407.54
1.200%
Oil 93.175
1.051%
USD/JPY 153.222
-0.492%
GBP/USD 1.35597
0.146%
GBP/JPY 207.769
-0.353%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On September 9th, He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Andre Demarai, Honorary Chairman of the Canada-China Business Council, at the Great Hall of the People. He Lifeng stated that during President Xi Jinpings meeting with Prime Minister Carney in January, both sides agreed to promote the building of a new type of strategic partnership between China and Canada, providing new strategic guidance for the development of bilateral relations. He welcomed Canadian businesses to share in the opportunities presented by Chinas high-quality development and hoped that the Canada-China Business Council would play a bridging role and make greater contributions to the development of China-Canada economic and trade relations. Demarai stated that the processing industry is full of confidence in Chinas economic prospects, and the Canada-China Business Council is willing to continue to contribute to the healthy and stable development of Canada-China economic and trade relations.Total is reportedly considering withdrawing from a $20 billion Saudi chemical project.The yield on German two-year government bonds rose to 3.052%, a 7.2 basis point increase on the day, marking the largest single-day gain since early July.British Prime Minister Burnham: I will not support a proposal to halt the construction of data centers. It is crucial that the community sees the benefits that data centers bring.The Stoxx Europe 600 index fell further to 1.5%, its biggest drop in two months.

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

 USD:CAD.png

 

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.


Suggestion