USDCAD, Daily
Canada CPI grew 0.3 in March after the 0.6% surge in February. CPI accelerated to a 2.3% y/y clip in March from 2.2% in February, the fastest rate since the 2.4% pace in October of 2014. The CPI-trim slowed to a 2.0% rate of y/y growth from 2.1%, the CPI-median expanded 2.1% versus an identical 2.1% and the CPI-common held at 1.9% from 1.9%. While total CPI growth is elevated and the core measures remain close to 2%, this report is a bit softer than anticipated, which may temper elevated expectations for a BoC rate hike in May. Indeed, in view it is supportive of steady policy in May, with the odds still tilted towards a 25 bps rate hike in July. Notably, the BoC expects a 2.3% Q2 growth pace for CPI, with March’s growth rate matching that pace (expectations were for March to overshoot 2.3%). Additionally Canadian Retail Sales rose 0.4% in February after a revised 0.1% gain in January (was +0.3%). A 1.4% rebound in motor vehicle sales and parts dealers drove the increase in total sales during February, as expected. The ex-autos sales aggregate was flat (0.0%) following a revised 1.0% gain in January (was +0.9%). Total sales volumes rose 0.3% in February.
All in all, the data was a touch on the weak side, USDCAD continued its recovery and spiked north of 1.2700 and to our T1 at 1.2708 for a net gain of +83 pips.
There's more! Access all our latest analyses and other great content by subscribing to the HotForex Youtube channel. You can also talk to our experts live by registering for one of our free webinars!
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.