– US Durable Goods Orders and Consumer Confidence ahead.
= Trader are sidelined ahead of data.
– US opens lower compared to Monday-CHF underperforms.
USDCAD: open 1.3569-73, overnight range 1.3560-1.3591, close 1.3586, WTI $81892, Gold, $2191.43
The Canadian dollar is trickling higher on the back of slightly improved global risk sentiment although volumes are light due to upcoming Easter holidays that start in many European centers on Thursday.
Bank of Canada Deputy Governor Carolyn Rogers spoke about Canada’s productivity challenges yesterday. She said the Bank of Canada views enhancing productivity as key to managing inflation.
The Fed’s favourite gauge for inflation, the Personal Income Expenditures Price Index report is released on Good Friday, when most of the major markets are closed. It is expected to be a tad firmer at 0.4% m/m compared to 0.3% in January.
Yesterday, Atlanta Fed President Raphael Bostic lowered his forecast for US rate cuts to just one move in 2024. His comments didn’t cause much of a stir as he has repeatedly switched between hawkish and dovish views since February.
Wall Street closed with small losses and Asian equity indexes did the same. Australia’s ASX fell 0.41% while Japan’s Nikkei 225 index was almost unchanged. European equity markets are trading in positive territory. The German Dax is seriously outperforming the other indexes. It has gained 0.63% while the French CAC has risen 0.21% and the UK FTSE 100 index is flat. The S&P 500 has risen 0.37% even with the US 10-year Treasury yield steady at 4.24%.
The improved global risk outlook has put a shine on gold. XAUUSD jumped $25.00 to $2196.57 overnight supported by rising geopolitical tensions and ongoing expectations for US rate cuts.
EURUSD traded in a 1.0833-1.0865 range despite some dovish comments by ECB officials. Governor Fabio Panetta noted the downtrend in inflation and said that within the Governing Council, a consensus was emerging toward lower rates. ECB Chief Economist Philip Lane offered an optimistic outlook as well.
GBPUSD is just above the mid-point of its 1.2634-1.2668 range. The currency is getting a bit of a lift after policymaker Catherine Mann suggested that traders were being too aggressive with their views for interest rate cuts.
USDJPY traded quietly in a 151.21-151.45 range due to intervention fears limiting gains while US/Japan interest rate differentials provide support.
AUDUSD inched higher in a 0.6532-0.6560 range due to improved risk sentiment.
US Durable Goods Orders, Case-Shiller Home Price index and Consumer Confidence data are ahead.