EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Canadian Inflation Moves Up; Oil Weighs CAD Down
Published March 24, 2017
Canadian Core Consumer Price Index showed a better reading than expected at 0.4% versus 0.1% while overall CPI fell to 0.2% from a reading of 0.9% last month; US Durable Goods orders beat expectations
USD/CAD is higher this morning due to lower oil prices which are on track for weekly losses of nearly 3%; this will mark the third consecutive weekly decline for the commodity as persistent oversupply worries weigh down prices
Language from Federal Reserve officials Robert Kaplan and Neel Kashkari yesterday indicated that the Fed plans to reduce its $4.5 trillion balance sheet as soon as possible; the Fed seems to be sticking with its initial plan of two more rate hikes this year while focusing attention on other monetary policy tools
The markets will again focus on Washington today; US President Donald Trump issued an ultimatum to House Republicans yesterday insisting that they either vote for Trump’s new healthcare bill or be stuck with Obamacare
The effectiveness of this ultimatum from Trump will play a part in driving US dollar and stock index market sentiment; the Dow Jones Industrial Average has dropped over 200 points this week as investors adjust expectations for the Trump agenda on tax cuts and infrastructure