These birds of a feather don’t stick together
FX Trader, Loonieviews.net
Summary: The Canadian and Australian dollars went their separate ways today, each because of news on the inflation front. Meanwhile, equities shed their initial China-inspired gains when disappointment over Netflix filtered through.
Statistics Canada reported that CPI rose 1.9% in March, year over year, well above the 1.5% level recorded in February. However, CPI excluding energy rose 2.2%. At the same time, Canada’s trade deficit narrowed in February and the January deficit was revised down as well. The news knocked USDCAD from 1.3338 to 1.3270. Prices bounced to 1.3338 as of 1410 GMT, due to a drop in WTI oil prices and the better than expected US trade data, which underpinned the greenback.
USDCAD is underpinned bullish technicals and a dovish Bank of Canada monetary policy outlook. Fibonacci support is at 1.3270 which represents the 50% retracement level of the February/March range. Prices continue to gravitate around the 100-day moving average at 1.3333. However, expectations for a Canadian growth rebound in Q2 and steady to high oil prices are capping topside moves.
The US goods and services deficit narrowed 3.46% to $49.4 billion in February which is an eight-month low. Some economists expect today’s data to contribute to a 1% jump in Q1 GDP which gave a bid to the US dollar.
The greenback is trading close to unchanged since New York opened against most of the major G10 currencies with AUDUSD and NZDUSD losing ground.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.