USD/CAD has strengthened due to increased retail sales in US and declined inflation in Canada.

Create at 1 year ago (Oct 17, 2023 21:27)

The decrease in the Consumer Price Index (CPI) has led to expectations that the Bank of Canada (BoC) will keep interest rates unchanged in the near future. Both the Core CPI and the CPI declined by 0.1% on a month-on-month (MoM) basis, while investors had anticipated a 0.1% increase. On an annual basis, the CPI and Core CPI weakened to 3.8% and 2.8%, respectively.

 

Retail sales in the United States expanded by 0.7%, driven by increased demand for cars and spending on dining out. The strong retail sales figures may influence consumer inflation expectations and create concerns for the Federal Reserve's policy makers.

 

The U.S. Dollar Index (DXY) has also surged, and interest rate expectations are in the range of 5.25-5.50%, which may keep monetary policy unchanged in November. It is believed that higher long-term bond yields may limit spending and investments by companies and households.

 

Furthermore, investors remain concerned about escalating tensions in the Middle East due to Iran's involvement and the ongoing conflict between Israel and Palestine, which could exacerbate the situation.

 

Source: Fxstreet

 

USD/CAD news today

Overview
Today last price 1.3686
Today Daily Change 0.0075
Today Daily Change % 0.55
Today daily open 1.3611
 
Trends
Daily SMA20 1.3582
Daily SMA50 1.3559
Daily SMA100 1.3417
Daily SMA200 1.3465
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