Economy Forex News

USD/CAD hits new weekly low below 1.23208

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  • Canadian dollar rises due to broad-based weakness in the US dollar.
  • Higher crude oil prices boost the Canadian dollar.
  • September Canadian CPI rose 4.4%, up from 4.1% in August.

USD/CAD falls to new weekly lows during the U.S. session, down 0.24%, trading at 1.2326 at the time of writing. Despite the Fed’s announcement about bond tapering at its November meeting and higher energy prices, the market is upbeat, buoyed by solid earnings in the US third quarter.

USD/CAD

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The Dow Jones, S&P 500 and Nasdaq all rose between 0.10% and 0.50%, while the CBOE volatility index (VIX), also known as the “fear index,” fell to 15.7, near its lowest level since February 2020, sending stocks higher.

Similarly, the U.S. dollar index, which measures the greenback’s performance against a basket of its peers, slips 0.15%, settling at 93.64. The yield on 10-year U.S. Treasury bonds, up one basis point, is currently 1.635%, not helping the dollar.

High crude oil prices boost CAD.

WTI, the U.S. crude oil benchmark, is up nearly 0.5%, trading at $82.80 per barrel, weighing on the USD/CAD pair, as shown by the 0.24% drop.

As for the macroeconomic front, the US economic docket presented the change in EIA crude oil stocks for the week ending October 15. Inventories plunged by 0.4 million barrels, leading to a slight rise in WTI prices.

Statistics Canada released the Consumer Price Index (CPI) for September, which increased 4.4% from 4.1% in August. The Bank of Canada’s (BoC) core CPI, excluding food and energy, rose 3.7%, up 36%.

Scotiabank analysts expect eight rate hikes by the end of 2023

By the end of 2023, Scotiabank analysts expect eight rate hikes from the Bank of Canada, starting in July 2022. Inflation in Canada reached its highest level since February 2003 after the forecast was released

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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