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Canadian Inflation Slows, Durable Goods Data Disappoints

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The Canadian inflation has recently decelerated as predicted by investors, causing a rapid surge in USD/CAD towards the 1.3180 range. The decline can be attributed to weak oil prices heavily affecting the Canadian Dollar.

Statistics Canada has reported that May’s Consumer Price Index data showed a monthly headline CPI pace of 0.4%, slightly lower than the estimated 0.5%.

This has caused annual headline inflation to slow to 3.4%, while monthly core CPI has softened to 0.4% and the annual core inflation has dropped to 3.7%.

Although Canada’s May Employment data was weaker than expected, the Bank of Canada (BoC) is not expected to skip policy-tightening.

As oil prices continue to plummet due to political unrest in Russia, it’s important to note that Canada is a top exporter of oil to the United States, which is significantly impacting the Canadian Dollar.

Traders should pay close attention to the US Dollar Index, as the market eagerly anticipates Jerome Powell’s speech for interest rate guidance.

Keep an eye on the Canadian inflation and oil prices as well, as they could have a major impact on USD/CAD and other related currency pairings.

US Dollar Takes a Hit Amid Disappointing Durable Goods Numbers: What’s Next for the Greenback?

The US Dollar is taking a hit after disappointing US Durable Goods numbers. We’re now keeping a close eye on US Consumer Confidence data to see if it can provide any relief for the struggling Greenback.

The US Dollar Index is losing ground and struggling to recover. Despite the PBoC’s surprise fixing in the Yuan, the USD isn’t picking up any momentum.

This has put significant pressure on the Greenback, especially against the Canadian Dollar as the USD/CAD pair falls to a six-month low.

Other currencies like the Polish Zloty, Japanese Yen, Euro, Pound Sterling, and Scandinavian coins are performing well against the struggling US Dollar.

While Durable Goods orders have increased from previous numbers, downward revisions have made investors uneasy.

The US Dollar briefly rallied before dropping to session lows after the revisions were announced.

The Conference Board’s Consumer Confidence Index for June is another number we’re closely watching – it’s expected to increase from 102.30 to 104.00, which could boost sentiment and performance for the US Dollar.

Traders, stay tuned for updates.

ECB President’s Hawkish Comments Drive Euro Above 1.0950 as US Dollar Struggles: Positive Global Economic Outlook Boosts Financial Markets

Euro climbs above 1.0950 on Tuesday thanks to upbeat sentiment and hawkish comments by ECB President Christine Lagarde.

While the US Dollar falters, financial markets are buoyed by increased confidence in the global economy and the possibility of further rate hikes. Plus, China’s GDP forecast has been raised, adding to the positive mood.

The EUR/USD pair continues to rise, reaching 1.0970 region after the release of the US Durable Goods Orders report.

Later today, keep an eye on the CB Consumer Confidence, May New Home Sales, and the June Richmond Fed Manufacturing Index.

Get Ready for the Australian Monthly CPI Figures

Be on the lookout for the Australian Monthly Consumer Price Index (CPI) figures that will be available soon.

Economists and researchers from five major banks have made forecasts for the upcoming inflation data, and it looks like the headline is seen softening to 6.1% year-on-year from the previous release of 6.8% in April.

The Bloomberg Survey has forecasted that the numbers will be clustered between 5.9%-6.2%.

These figures will set the backdrop for the RBA’s July meeting.

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.