USD / CAD - Canadian dollar adds to losses - InvestingChannel

USD / CAD – Canadian dollar adds to losses

– Negative risk sentiment sinks commodity currency bloc

– WTI oil rally has lost momentum.

– US dollar opens mixed, gives back most gains against EUR and GBP

USDCAD snapshot: open 1.3634-38, overnight range 1.3616-1.3641, close 1.3627, WTI $77.30, Gold $1998.82

The Canadian dollar was knocked for further yesterday after US data and fresh banking woes soured risk sentiment.

The news of fleeing deposits from First Republic Bank (FRB) reignited concerns that the US banking crisis was far from over. When the dust settled, FRB shares had lost 50% of their value and the S&P 500 index closed with a 1.58% loss.

The sour mood worsened after the release of the consumer confidence report.

The Conference Board consumer confidence index fell in April to 101.3 from 104.0 in March. The Expectations Index which is based on consumers’ short-term outlook for income, business, and labor market condition dropped to 68.1 from 74.0.

It wasn’t all bad. The Present Situation Index increased to 151.1 from 148.9 in March.

West Texas Intermediate (WTI) oil rallied after the American Petroleum Institute’s weekly crude stock data showed inventories fell 6.0 million barrels last week. Prices climbed from $77.10 to $77.90 in Asia before sliding down to $76.71 in early NY trading today.

The minutes from the Bank of Canada’s April 12 meeting are released this afternoon. Governor Mackem’s speeches to the IMF and his testimony to parliament that occurred after the monetary policy meeting suggest the minutes will be a non-event.

EURUSD traded in a 1.2404-1.2490 range, supported by the news that Sweden’s Riksbank raised rates by 50 bps and suggested another 25 bp hike was likely.

GBPUSD chopped in a 1.2404-1.2483 range overnight. Recent robust data releases and an anticipated 25 bp rate bump from the Bank of England are underpinning prices.

USDJPY see-sawed in a 133.40-133.92 band after dropping from 134.47 yesterday. The sell-off was driven by falling US 10-year Treasury yields and safe-haven demand.

AUDUSD rallied than sank in a 0.6597-0.6638 range after inflation rose higher than expected in March.. Q1 CPI rose 6.3% m/m (forecast 6.5%) but the details were weak suggesting the RBA will leave rates unchanged next week.

Today’s US data includes March Durable Goods Orders (forecast 0.8%, previously -1.0%) and Wholesale Inventories.

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