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August 7th - TSMC has achieved a breakthrough in next-generation technology, successfully developing a high-performance monolayer molybdenum disulfide (MoS2) top-gate transistor in collaboration with a team from National Chiao Tung University, which could help push the limits of Moores Law. The findings were published in the journal *Nature Electronics*.Hong Kong-listed stocks related to large-scale modeling continued to rise, with MINIMAX-W (00100.HK) up nearly 25% and Zhipu (02513.HK) up over 17%.August 7th - According to statistics released today by the General Administration of Customs, my countrys imports of bulk commodities increased by 3% year-on-year in the first seven months of this year, with imports of metal ores increasing by 8.2%. During the same period, imports of machinery and electronic products reached 5.31 trillion yuan, a 29.7% increase, accounting for 41.9% of my countrys total imports. my country has actively expanded its opening-up and proactively increased imports, promoting balanced development of imports and exports. To date, zero-tariff policies have been implemented for 63 countries, and Chinas import volume has remained the second largest globally for 17 consecutive years.According to the General Administration of Customs, China exported 1.092 million automobiles (including chassis) in July, compared with 1.069 million in June.According to the General Administration of Customs, China imported 9,451.3 tons of rare earths in July, compared to 6,261.5 tons in June.

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

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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.


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