- The Canadian dollar is rising due to the general weakness of the US dollar.
- Higher crude oil prices boost the Canadian dollar.
- Canada’s CPI for September increased 4.4%, up from 4.1% in August.
The USD / CAD it falls to new weekly lows during the American session, down 0.24%, trading at 1.2326 at the time of writing. Despite the announcement of the Federal Reserve bond phasing out at the November meeting and higher energy prices, market sentiment is optimistic, driven by strong corporate third-quarter US earnings.
The Dow Jones, the S&P 500 and the Nasdaq rose between 0.10% and 0.50%, while the CBOE volatility index (VIX), also known as the “fear index,” fell to 15.7, near the lowest level. since February 2020, what stocks are up in the week.
Meanwhile, the US dollar index, which measures the performance of the dollar against a basket of its peers, plummets 0.15%, stands at 93.64. In contrast, the 10-year US Treasury yield rises one basis point, currently stands at 1.635%, without boosting the dollar.
High crude prices boost CAD
The WTI, the benchmark US crude oil index, is rising almost 0.5%, trading at $ 82.80 per barrel, which weighs on the USD / CAD pair, as shown by the 0.24% drop.
On the macroeconomic front, the US economic record featured the change in crude oil stocks from the EIA for the week ending October 15. Inventories plummeted by 0.4 million barrels, causing a slight increase in WTI prices.
According to data released by Statistics Canada, the Canadian economic record released the Consumer Price Index (CPI) for September, which was up 4.4% from 4.1% in August. Meanwhile, the basic CPI of the Bank of Canada (BoC), excluding food and energy, increased by 3.7%, higher than 36%.
Scotiabank analysts expect eight rate hikes by end of 2023
According to analysts at Scotiabank, they expect eight rate hikes from the Bank of Canada by the end of 2023, starting in July 2022. The forecast came after Canada’s inflation, which is the highest reading since February, was reported. 2003.
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