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    USD/CAD depreciates to near 1.3560 on higher Crude oil prices, US Manufacturing PMI eyed

    Source Fxstreet
    Mar 1, 2024 04:27
    • USD/CAD loses ground as WTI oil price improves to near $78.10 during the Asian hours.
    • Canadian Dollar might have received support on the upbeat Canadian GDP Annualized.
    • CME FedWatch Tool suggests the probability of rate cuts in March is at 3.0%.

    USD/CAD breaks the winning streak that began on February 23, which could be attributed to the improved Crude oil prices as Canada is the largest oil exporter to the United States (US). The pair edges lower to near 1.3560 during the Asian session on Friday.

    Additionally, upbeat Canada’s Gross Domestic Product (GDP) Annualized might have provided some support to underpinning the Canadian Dollar (CAD). The data reported a growth of 1.0% in the fourth quarter of 2023. The market expectation was an increase of 0.8% against the previous decline of 0.5%. Moreover, GDP (QoQ) rose by 0.2% against the previous decline of 0.1%.

    The West Texas Intermediate (WTI) oil price is showing improvement, nearing $78.10, as speculation arises regarding the potential extension of supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and ongoing tensions in the Middle East.

    Recent data, including Gross Domestic Product (GDP) figures and the US Personal Consumption Expenditures - Price Index from the United States (US), has led to a postponement in market expectations for the Federal Reserve's (Fed) first-rate cut. This has provided support for the US Dollar (USD). Investors are now awaiting the final US S&P Global Manufacturing PMI for February, scheduled for release on Friday.

    According to the CME FedWatch Tool, the probability of rate cuts in March is at 3.0%, with expectations decreasing to 23.1% in May and increasing to 52.2% in June. Atlanta Fed President Raphael W. Bostic commented that recent inflation data indicates a challenging path toward achieving the central bank's 2% inflation target. Moreover, Chicago Fed President Austan Dean Goolsbee anticipates the first-rate cuts later this year but refrained from specifying the exact timeline.

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    PBoC sets USD/CNY reference rate at 7.1046 vs 7.1020 previousOn Monday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1043 as compared to Friday's fix of 7.1046 and 7.2359 Reuters estimates.
    Source  Fxstreet
    On Monday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1043 as compared to Friday's fix of 7.1046 and 7.2359 Reuters estimates.
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    USD/JPY goes on a roller-coaster ride prompted by geopolitical riskUSD/JPY is trading in the 154.50s on Friday after declining to a low for the day in the 153.00s on the back of a spike in safe-haven demand that disproportionately favored the Japanese Yen (JPY).
    Source  Fxstreet
    USD/JPY is trading in the 154.50s on Friday after declining to a low for the day in the 153.00s on the back of a spike in safe-haven demand that disproportionately favored the Japanese Yen (JPY).
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    EUR/USD enters oversold zone in the 1.0600s ahead of final Eurozone inflation readingEUR/USD trades slightly down on Wednesday in the lower 1.0600s, as it clocks up a sixth consecutive day of losses.
    Source  Fxstreet
    EUR/USD trades slightly down on Wednesday in the lower 1.0600s, as it clocks up a sixth consecutive day of losses.
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