EUR/USD 1.15319
-0.496%
Gold 4642.25
-2.436%
Oil 100.801
7.012%
USD/JPY 159.570
0.480%
GBP/USD 1.32161
-0.680%
GBP/JPY 210.858
-0.166%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
ECB Governing Council member Simkus: Its too early to say what we need to do in April.April 2nd - The State Council announced the appointment and removal of state personnel. Chang Junhong (female) was appointed Assistant Minister of Finance; Lei Xiaowu was appointed Deputy Director of the National Bureau of Statistics; Wang Jianbo was appointed Deputy Director of the National Energy Administration; and Yao Laiying was appointed Director of the State Tobacco Monopoly Administration. Zhao Zenglian was removed from his post as Deputy Director of the General Administration of Customs; Yao Laiying was removed from his post as Deputy Director of the State Administration of Taxation; Sheng Laiyun was removed from his post as Deputy Director of the National Bureau of Statistics; and Zhang Jianmin was removed from his post as Director of the State Tobacco Monopoly Administration.ECB Governing Council member Simkus: Due to changing circumstances, he called for caution regarding interest rates.April 2 – Foreign Ministry Spokesperson Mao Ning held a regular press conference on April 2. In response to a question regarding relations between China and the Cook Islands, Mao Ning stated that the Cook Islands is an important partner of China in the South Pacific region. Since the establishment of diplomatic relations, the two countries have always respected each other, treated each other as equals, and pursued common development. China is willing to deepen pragmatic cooperation with the Cook Islands and continuously improve the well-being of the people of both countries. Relations between China and the Cook Islands are not directed against any third party, nor should they be subject to interference or constraints from any third party. All countries developing relations with Pacific island nations should genuinely respect the independence and autonomy of these island nations, adhere to the principle of development first, and maintain openness and inclusiveness.April 2 – Foreign Ministry Spokesperson Mao Ning held a regular press conference on April 2. A reporter asked, “It has been reported that China has extended its fuel export ban until April, but is considering granting exemptions to a few countries that have requested assistance, including Sri Lanka, Bangladesh, and Vietnam. Is China currently in discussions with these countries regarding fuel aid?” Mao Ning replied, “For specific questions, please consult the relevant authorities.” He continued, “The root cause of the current global energy shortage lies in the tense situation in the Middle East. The urgent task is to immediately cease military operations to prevent further damage to the global economy.”

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