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On April 16, the Russian Ministry of Defense released a daily combat report stating that, in response to the Ukrainian militarys terrorist attacks on civilian facilities within Russia, the Russian military launched a large-scale strike in the past 24 hours using land-based, air-based, and sea-based long-range high-precision weapons and attack drones against Ukrainian defense industrial complex facilities used for the production of cruise missiles and medium- and long-range drones, as well as fuel and energy complex facilities serving the Ukrainian military. In addition, the Russian military also struck a total of 154 areas, including container terminals, armored vehicle storage yards, ground robotic system testing grounds, and temporary deployment points of Ukrainian armed forces and foreign mercenaries. Russian air defense systems shot down 5 guided-missile bombs and 270 fixed-wing drones. The Ukrainian military suffered approximately 1,055 casualties across various operational fronts.A spokesperson for the European Commission said that easing any sanctions on Russia would not help.On April 16th, the newly established National Automotive Standardization Technical Committee was in Beijing. A relevant official from the Ministry of Industry and Information Technology stated that during the 15th Five-Year Plan period, my country will accelerate the development of key core standards for the automotive industry, fully leveraging the guiding role of standards. Furthermore, during the 15th Five-Year Plan period, the guiding role of automotive standards will also contribute to improving product quality. This includes accelerating the formulation and revision of standards for automotive extreme environment adaptability, power battery cycle life, new energy vehicle energy consumption limits, and electromagnetic environment adaptability. Moreover, standards will guide the innovative application of key technologies. This includes accelerating the construction of standard systems in cutting-edge fields such as solid-state batteries and automotive artificial intelligence, and promoting the formulation and revision of standards for megawatt-level charging, intelligent chassis, and large-angle automotive seats.On April 16th, the Nikkei reported on April 15th that Tesla revealed on the 14th that it is considering producing humanoid robots at its Shanghai Gigafactory. The Shanghai factory has been producing electric vehicles since 2019 and will begin producing large-scale energy storage batteries in 2025. This plan to further expand manufacturing to humanoid robots aims to maintain its growth momentum in the Chinese market. Wang Hao, Vice President of Tesla and President of Tesla China, stated on the 14th that with the arrival of the robotics era, the Shanghai Gigafactory, like other Tesla factories, will shoulder an extremely important role as a production base, making significant contributions in areas such as robotics. The report stated that Tesla has not yet released details regarding the specific timing and scale of production. However, according to reports from some Chinese securities companies, its goal is to achieve an annual production capacity of 100,000 units by the end of 2026.The governor of the Polish central bank stated that the likelihood of further interest rate cuts has decreased due to the risk of an energy shock. The probability of holding rates steady or raising them is greater than cutting them.

Near 1.3600, USD/CAD Meets Difficult Resistance Amid a Weak USD Index and Rising Crude Prices

Daniel Rogers

Mar 29, 2023 14:32

USD:CAD.png 

 

Near 1.3600, the USD/CAD pair encountered resistance during the Asian session. As the US Dollar Index (DXY) appears vulnerable to further losses below 102.40, the Canadian dollar appears to have a sturdy downside bias. The USD Index has found support near 102.40, but a retracement is likely as risk appetite improves.

 

The USD Index is under intense pressure as a result of the decline in U.S. banking concerns. As reported by Reuters, US House Speaker Kevin McCarthy stated in an interview with CNBC on Tuesday that "at this time" there is no need for universal insurance on all bank deposits, reviving concerns of a banking crisis in the United States.

 

Tuesday's S&P500 futures remained predominantly constrained in response to House Speaker Kevin McCarthy's remarks. The Federal Reserve (Fed) is expected to maintain a consistent tone when announcing its interest rate decision at its May monetary policy meeting, despite the optimistic market sentiment.

 

In the interim, demand for U.S. government bonds remained low due to investors' expectation that the nation will emerge from its banking crisis sooner. This led to a rise in 10-year US Treasury yields to 3.57 percent.

 

According to Bloomberg, the Canadian Dollar remained volatile on Tuesday after Finance Minister Chrystia Freeland's announcement that dividends received by financial institutions from holding domestic equities will be considered business income. This will generate billions in tax revenue from banks and insurance firms that receive dividends from Canadian corporations.

 

Due to a weakening US Dollar and expectations of additional sanctions against Russia, the price of oil has risen to close to $74.00 on the energy front. The US Energy Information Administration (EIA) oil inventory data will be attentively monitored for additional guidance. As anticipated, the US EIA will report an increase of 0.187 million barrels in oil stocks for the week ending March 24.

 

Notably, Canada is the leading oil exporter to the United States, and rising crude prices would strengthen the Canadian Dollar further.