• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On February 24, the Liaoning Provincial Peoples Government issued the "Several Policy Measures of Liaoning Province to Promote New and Positive Economic Development," which proposes to provide interest subsidies of 1.5% of the loan principal annualized interest rate for projects such as low-altitude aircraft, key low-altitude equipment and core components, key materials research and development and manufacturing, and operation service capacity building. The maximum annual interest subsidy for a single project is 1 million yuan, and the maximum annual interest subsidy for a single enterprise is 5 million yuan.According to CBS: Trump is unhappy with the limited military options against Iran, and advisors have warned that any strike could be ineffective and could lead to a larger conflict.On February 24th, IBM (IBM.N) shares plunged on Monday after AI startup Anthropic announced that its Claude Code tool could help modernize COBOL, an outdated programming language that primarily runs on IBM computers. IBM (IBM.N) shares fell as much as 13%, marking its biggest single-day drop since March 2020. Data compiled by institutions shows that, as a result, the stock fell 26% in February, on track for its largest monthly decline since at least 1968.February 24th - Supported by strong semiconductor shipments and a vibrant domestic stock market, South Koreas consumer confidence index climbed to its highest level since November in February. Data released by the Bank of Korea showed that the composite consumer confidence index rose to 112.1 in February, the highest level since November last year, and well above the neutral threshold of 100.FedEx (FDX.N) is suing the U.S. government, demanding a full refund of emergency tariffs.

With eyes on Fed's Powell and BoC's Mackem, USD/CAD falls toward 1.3400 as oil prices rise

Alina Haynes

Feb 07, 2023 15:56

USD:CAD.png

 

Tuesday morning's trading near 1.3430 represents the first negative daily performance in four days for the USD/CAD pair, extending losses near the intraday low. Despite this, the Loonie pair remains close to 12-day highs as traders await comments from Governor Tiff Macklem of the Bank of Canada (BoC) and Chairman Jerome Powell of the Federal Reserve (Fed).

 

The recent decline of the quote may be related to the market's cautious optimism in light of receding economic fears. The strengthening of WTI crude oil prices, Canada's principal export commodity, might exacerbate the downturn.

 

WTI crude oil rises 0.40 percent to $75.00, extending yesterday's rebound from a two-month low. The recovery of the price of black gold may be related to diminishing fears of an economic slowdown in the United States as well as recent positive news reports regarding Sino-American ties.

 

Even though the US economic calendar was fairly silent, Treasury Secretary Janet Yellen and President Joe Biden's growth optimism appeared to weigh on US Dollar bulls. Despite this, it appears that hawkish Fed deliberations strengthen US Treasury bond yields and the US Dollar. In an interview with Bloomberg, Federal Reserve Bank of Atlanta President Raphael Bostic noted, "The robust job market likely indicates 'we have a little bit more work to do.'"

 

A dash on the US diplomatic visit to Beijing and China's angry response to the US shooting down its balloon by labeling it as a spying attempt triggered the market's risk-off mentality and lifted the USD/CAD pair the day before. Recent comments by US Vice President Joe Biden appear reassuring, as he noted, "The balloon incident does not impair US-China relations."

 

After a two-day rebound from the monthly low, the 10-year US Treasury bond struggled for direction at 3.63%, while S&P 500 Futures saw minor gains reflecting the prevalent sentiment.

 

Moreover, bullish readings of the Canada Ivey Purchasing Managers Index for January, 60.1, compared to 55.2 expected and 49.9 prior, appear to exert downward pressure on the USD/CAD exchange rate.

 

Future USD/CAD traders may react swiftly to the December Canadian trade statistics. However, the words of Bank of Canada Governor Macklem, Federal Reserve Chairman Jerome Powell, and US Vice President Joe Biden's State of the Union (SOTU) address will be crucial for providing clear directives.