Forex analytics and overview

USD/CAD Pares Gains, Canadian Inflation Eases

2023.06.27 10:02

MarketPulse

  • Canada’s inflation rate eases
  • US Durable Goods Orders accelerates

The Canadian dollar spiked and gained 50 points after Canada released the May inflation report but has pared these gains. is unchanged at 1.3158.

Canadian inflation heads lower

Canada’s inflation rate fell sharply in May to 3.4%, down from 4.4% in April. As expected, much of that decline was due to lower gasoline prices. Still, this is the lowest inflation rate since June 2021. The core rate, which is comprised of three indicators, fell to an average of 3.8% in May, down from 4.2% a month earlier.

The decline should please policymakers at the Bank of Canada, as inflation slowly but surely moves closer to the 2% target. The BoC cited the surprise upswing in inflation in April as one reason for its decision to hike rates earlier this month. With headline and core inflation falling in May, will that be enough to prevent another rate increase in July? Not so fast. The BoC has said its rate decisions will be data-dependent, and there is the GDP on Friday and employment next week, both of which will factor in the rate decision.

The US released a host of releases today, giving the markets plenty to digest. Durable Goods Orders jumped 1.7% in June, up from an upwardly revised 1.2% in May and crushing the consensus of -1%. The core rate rebounded with a 0.6% gain, up from -0.6% and above the consensus of -0.1%. Later today, the US publishes the Conference Board Consumer Confidence and New Home Sales.

Wednesday is a light day on the data calendar, with the Fed will in the spotlight. Fed Chair Jerome Powell will participate in a “policy panel” at the ECB Banking Forum in Sintra, Portugal, and investors will be looking for some insights into Fed rate policy. As well, the Fed releases its annual “stress tests” for major lenders, which assess the ability of lenders to survive a severe economic crisis. The stress tests will attract more attention than in previous years, due to the recent banking crisis which saw Silicon Valley Bank and two other banks collapse.

USD/CAD Daily Chart

USD/CAD Technical

  • There is resistance at 1.3197 and 1.3254
  • 1.3123 and 1.3066 are providing support

Original Post

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,839.68 1.12%
ethereum
Ethereum (ETH) $ 3,352.60 0.17%
tether
Tether (USDT) $ 0.999172 0.10%
xrp
XRP (XRP) $ 2.22 0.81%
bnb
BNB (BNB) $ 664.67 0.31%
solana
Solana (SOL) $ 186.13 2.19%
dogecoin
Dogecoin (DOGE) $ 0.320785 1.11%
usd-coin
USDC (USDC) $ 1.00 0.17%
cardano
Cardano (ADA) $ 0.908688 1.28%
staked-ether
Lido Staked Ether (STETH) $ 3,346.15 0.15%
tron
TRON (TRX) $ 0.247907 0.89%
avalanche-2
Avalanche (AVAX) $ 37.78 0.84%
chainlink
Chainlink (LINK) $ 23.12 4.30%
the-open-network
Toncoin (TON) $ 5.50 3.48%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,976.56 0.39%
shiba-inu
Shiba Inu (SHIB) $ 0.000022 2.04%
sui
Sui (SUI) $ 4.41 1.14%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,465.58 1.18%
stellar
Stellar (XLM) $ 0.364351 3.25%
polkadot
Polkadot (DOT) $ 7.06 1.49%
hedera-hashgraph
Hedera (HBAR) $ 0.266586 5.79%
hyperliquid
Hyperliquid (HYPE) $ 29.36 16.05%
weth
WETH (WETH) $ 3,351.02 0.21%
bitcoin-cash
Bitcoin Cash (BCH) $ 456.67 0.77%
leo-token
LEO Token (LEO) $ 9.40 0.92%
uniswap
Uniswap (UNI) $ 14.21 3.09%
litecoin
Litecoin (LTC) $ 104.27 4.96%
pepe
Pepe (PEPE) $ 0.000018 4.70%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,534.69 0.22%
near
NEAR Protocol (NEAR) $ 5.18 3.70%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.18%
bitget-token
Bitget Token (BGB) $ 4.14 0.40%
usds
USDS (USDS) $ 1.00 0.02%
aptos
Aptos (APT) $ 9.40 0.66%
aave
Aave (AAVE) $ 328.98 10.65%
internet-computer
Internet Computer (ICP) $ 10.25 2.18%
crypto-com-chain
Cronos (CRO) $ 0.157553 0.99%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.487284 2.58%
mantle
Mantle (MNT) $ 1.20 3.56%
ethereum-classic
Ethereum Classic (ETC) $ 26.72 2.64%
vechain
VeChain (VET) $ 0.047049 3.95%
render-token
Render (RENDER) $ 7.28 3.20%
monero
Monero (XMR) $ 191.90 1.93%
mantra-dao
MANTRA (OM) $ 3.72 3.23%
whitebit
WhiteBIT Coin (WBT) $ 24.48 1.06%
bittensor
Bittensor (TAO) $ 466.19 2.76%
dai
Dai (DAI) $ 1.00 0.01%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.30 3.18%
arbitrum
Arbitrum (ARB) $ 0.770173 3.13%
ethena
Ethena (ENA) $ 1.08 5.69%