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On June 29, Federal Reserve Governor Tim Cook stated, “This matter (the mortgage fraud allegations) has absolutely nothing to do with mortgage documents I signed before I became a Federal Reserve Governor. This is purely a conspiracy to remove me from office, and the pretext is entirely fabricated. The reason I am being targeted is because I refused to succumb to political pressure and insisted on setting interest rate policies solely based on what is best for the American people. This is the most fundamental responsibility of a Federal Reserve Governor. Today’s ruling reaffirms a principle that underpins generations of sound economic management: the Federal Reserve must make all policy decisions based on evidence and independent judgment, free from political interference.” “The Supreme Court’s decision to uphold the lower court’s order and affirm the necessity of due process and just cause recognizes that the Federal Reserve’s independence is crucial to achieving the congressional goals of ‘price stability’ and ‘full employment.’ I am deeply gratified by this ruling. As long as I serve on the Federal Reserve, I will continue to uphold the principle of political independence and serve the American people wholeheartedly.”Castle Securities: Investors have underestimated Federal Reserve Chairman Warshs determination to curb inflation. Higher interest rates could put pressure on risk assets.CMA CGM has signed a $400 million logistics terminal agreement in Oman.According to The Verge, Apples (AAPL.O) Mac and iPad devices may be getting an upgrade to OLED screens with better color performance.On June 29th, Xunze (03317.HK) announced that it has formally entered into a cooperation framework agreement with Beijing International Big Data Exchange Co., Ltd. Beijing International Big Data Exchange is a key project in Beijings implementation of the "National Comprehensive Demonstration Zone for Expanding Opening-up in the Service Industry" and the "China (Beijing) Pilot Free Trade Zone" in the digital economy field, aiming to become a leading domestic data trading infrastructure and an important international hub for cross-border data flow. This cooperation marks a further deepening of the companys strategic layout in the data element market and national-level data trading platform. It is a crucial step for the companys data tokenization capabilities to be implemented in vertical industries, embodying intelligent data circulation, providing digital asset services, and co-building a data ecosystem in the biomedical vertical sector.

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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