- The USD/CAD remains stable before the expected publication of the US Consumer Price Index (CPI) for April, scheduled for Tuesday.
- The general CPI is expected to rise to 0.3% monthly, recovering from the previous -0.1%.
- The Canadian dollar, linked to raw materials, could find some support as crude oil prices continue to increase.
The USD/CAD points to its fifth consecutive daily increase, around 1,3970 during the European session on Tuesday. However, the PAR faced some resistance as the US dollar (USD) weakened before the very anticipated report of the US Consumer Price Index (CPI) for April, which will be published later in the US session.
Market expectations suggest a rebound in the general CPI at 0.3% intermensual from -0.1%, while the underlying CPC is expected to also increase to 0.3% from 0.1%. Interannual readings for both are projected that they remain unchanged.
Despite the slight setback of the USD, the USD/CAD torque found support in the encouraging developments of commercial conversations between the US and China. During the weekend, both countries reached a preliminary agreement in Switzerland aimed at significantly reducing tariffs, an effort seen as a step towards reducing commercial tensions. According to the agreement, the US will reduce tariffs on Chinese products from 145% to 30%, while China will cut tariffs on US imports from 125% to 10%. This advance has raised the feeling of the market and is considered a positive signal for the stability of global trade.
On the other hand, the increase in crude oil prices could support the Canadian dollar (CAD), potentially limiting additional profits in the USD/CAD torque. Since Canada is the largest oil exporter to the US, the highest prices of oil generally strengthen CAD.
The price of oil West Texas Intermediate (WTI) is extending its winning streak to the fourth consecutive session, quoting about $ 61,70 per barrel. The rally follows a renewed optimism for the tariff agreement between the US and China, reinforcing the hopes of an improvement in the dynamics of global trade.
Economic indicator
Consumer Price Index (Monthly)
Inflation or deflationary trends are measured by periodically adding the prices of a basket of representative goods and services and presenting the data such as the consumer price index (CPI). IPC data is collected monthly and are published by the Labor Statistics Office of the US the intermensual figure compares the prices of the goods in the month of reference with the previous month. The CPI is a key indicator to measure inflation and changes in consumption trends. Generally, a high reading is considered bullish for the US dollar (USD), while a low reading is considered bassist.
Read more.
Next publication:
May May 13, 2025 12:30
Frequency:
Monthly
Dear:
0.3%
Previous:
-0.1%
Fountain:
US Bureau of Labor Statistics
The US Federal Reserve (FED) has a double mandate to maintain price stability and maximum employment. According to this mandate, inflation should be around 2% year -on -year and has become the weakest pillar of the Central Bank directive since the world suffered a pandemic, which extends until these days. Price pressures continue to increase in the midst of problems in the supply chain and bottlenecks, with the consumer price index (IPC) at maximum levels of several decades. The Fed has already taken measures to tame inflation and it is expected to maintain an aggressive position in the predictable future.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
