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On August 13, local time, the Ukrainian State Railways issued a statement saying that a passenger train in Odessa Oblast was attacked by a drone, killing the train driver and his assistant. The statement said the train was carrying 340 passengers at the time of the attack, and all passengers and remaining crew members have been safely evacuated; there were no other injuries.The President of Finland: I spoke with British Prime Minister Burnham, and we discussed the situation in Ukraine and our support for Ukraines defense. Finlands relationship with the UK, and our defense cooperation, is very strong. The UK is an important player in the region.August 13th - According to data from the China Passenger Car Association (CPCA), from August 1st to 9th, the national passenger car market retail sales reached 317,000 units, a 22% decrease compared to the same period last August and a 3% decrease compared to the same period last month. The cumulative retail sales this year totaled 10.49 million units, a 20% decrease year-on-year. From August 1st to 9th, national passenger car manufacturers wholesaled 276,000 units, a 24% decrease compared to the same period last August and a 2% increase compared to the same period last month. The cumulative wholesale sales this year totaled 15.086 million units, a 5% decrease year-on-year.Japanese Prime Minister Sanae Takaichi: Putins visit to the island makes the restoration of Japan-Russia bilateral relations more difficult.Japanese Prime Minister Sanae Takaichi: Strongly protests Putins visit to the Northern Territories.

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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