EUR/USD 1.17685
-0.115%
Gold 4854.42
1.329%
Oil 82.946
-7.452%
USD/JPY 158.556
-0.368%
GBP/USD 1.35187
-0.057%
GBP/JPY 214.355
-0.412%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On April 18th, the International Air Transport Association (IATA) warned that the Middle East conflict could trigger aviation fuel rationing measures, with flight cancellations in Europe potentially starting as early as the end of May. IATA urged governments to develop coordinated and comprehensive response plans as soon as possible to mitigate the impact on flight operations. According to Lianhe Zaobao, IATA Director General Walsh stated on Friday (April 17th) that the International Energy Agencys earlier assessment that European aviation fuel shortages could begin within about six weeks should be taken very seriously. Walsh said, "Based on the current situation, Europe could begin canceling flights due to aviation fuel shortages as early as the end of May, and similar situations have already occurred in parts of Asia."On April 18, Iranian Deputy Foreign Minister Saeed Khatibzadeh stated that Iran will never accept a US blockade of its ports or any other "orders" issued by the US. "There will never be any blockades in the future," he said. "The era of colonialism must end," he added. The US "cannot dictate to other countries."The UK Maritime Trade Operations Office has received reports of an incident occurring 20 nautical miles northeast of Oman.April 18th - While Hong Kongs IPO market is booming, some companies seeking to list are submitting substandard or overly embellished listing documents. Liu Ying, Co-Head of Initial Public Offering Review at the Hong Kong Stock Exchanges Listing Division, stated in an interview that companies seeking to expedite the approval process must ensure their information disclosure is truthful, accurate, comprehensive, and concise. The Hong Kong Stock Exchange is currently reforming its listing mechanism, allowing applicants to submit materials confidentially, but simultaneously upgrading its penalty mechanisms. If the materials fail to meet standards, the names of the sponsor, law firm, accountants, and other professional teams will be publicly disclosed. She reminded the market that thorough preparation is the fastest path to listing.April 18 - According to the Iraqi National News Agency, the Iraqi Ministry of Oil stated that oil exports from all oil fields will resume in the coming days. Four energy sources said that after a disruption of more than a month due to shipping blockages in the Strait of Hormuz, Iraq resumed oil exports from the south on Friday, with one tanker already loading crude oil.

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

 USD:CAD.png

 

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.


Suggestion