• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 23, Bank of Canada Governor John Macklem stated that the agreement reached between the United States and Iran to end the conflict and allow crude oil to be transported through the Strait of Hormuz is a welcome development for the global economy. Briefly mentioning this in a speech on global imbalances, Macklem said, "Global energy prices have begun to decline, although many issues remain to be addressed." Driven by rising gasoline prices, Canadas inflation rate accelerated in May, reaching its highest level since 2023. Economists believe that the immediate decline in energy prices should lead to a softening of overall inflation, which will provide further reassurance to the Bank of Canada given that core CPI appears to be under control.European Central Bank Vice President Vujicic: Inflation will remain high.Market news: The United States has added dozens of entities to its sanctions list.On June 23, He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted research in Henan Province from June 21 to 23. He Lifeng pointed out the need to accelerate the improvement of the industrial innovation system, continuously promote the stable scale and optimized structure of foreign trade, and further consolidate the foundation for a stable and positive economic development. He Lifeng visited Anyang and Xinxiang in Henan Province to gain an in-depth understanding of the production, operation, technological innovation, and foreign trade exports of relevant manufacturing, technology, and consumer enterprises. He Lifeng emphasized the need to strengthen industry-university-research cooperation to better promote the efficient transformation and application of scientific research results, promote the deep integration of technological innovation and industrial innovation, and empower the revitalization and upgrading of traditional industries. He stressed the importance of fully leveraging my countrys advantages in industry, market, and technology, deepening the alignment with international rules and standards, effectively responding to external uncertainties, promoting the integrated development of goods trade and service trade, and continuously improving the quality and efficiency of foreign trade. He also emphasized the need to further enrich consumption scenarios, improve product and service quality, enhance residents willingness to consume, and better meet the peoples needs for a high-quality life. Finally, he stressed the need to effectively prevent and resolve risks in key areas, vigorously and orderly promote the exit and reform transformation of local government financing platforms, continuously promote the reform and risk mitigation of local small and medium-sized financial institutions, and strive to stabilize the real estate market.U.S. Treasury Department website: The United States publishes a list of designated transnational criminal organizations.

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.