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The S&P Composite 1500 residential construction sub-index hit a more than three-week high, with a recent gain of 3.7%.Nike (NKE.N) fell after the U.S. Supreme Court will not rule on the tariff case today.On January 9th, Kaidi Co., Ltd. announced that its stock price had deviated by more than 20% cumulatively over the past three trading days, constituting an abnormal stock trading fluctuation. After verification, the companys production and operations are currently normal, and there have been no significant changes in the internal or external operating environment. The companys robot-related business has been initiated, but the products are still in the development stage and will not generate revenue in the short term; therefore, it is not expected to have a significant impact on the companys performance. Furthermore, while the companys operating revenue increased by 3.67% year-on-year in the first nine months of 2025, its net profit attributable to shareholders decreased by 59.64% year-on-year, indicating significant pressure on its full-year performance.Intel (INTC.O) shares rose as much as 9%, hitting their highest level since April 2024.U.S. stocks edged higher on Friday, January 9th, as the December nonfarm payrolls report did not change expectations that the Federal Reserve would keep interest rates unchanged. Meanwhile, traders are closely watching the Supreme Courts potential ruling on the legality of Trumps tariffs. State Street Macro Multi-Asset Strategist Cayla Seder said, "Todays labor data suggests the labor market is more balanced than weak. This figure is strong enough to show the economy is in a decent state, but not strong enough to require a significant shift in market expectations for monetary policy, which is positive for stocks." Regarding the tariff ruling, the U.S. Supreme Court is about to rule on the legality of President Trumps comprehensive tariff policy introduced in April, which is one of the next major tests for U.S. stocks and bonds, a policy that once shook the market. If the ruling finds the tariffs unconstitutional, stocks could be boosted as profit margins are expected to improve and the burden on consumers will be reduced. At the same time, Treasuries may come under pressure, as such a potential stimulus policy would complicate the Feds rate-cutting path and risk exacerbating the governments budget deficit.

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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