Canadian Dollar Sell at the Crosses
Chester Ntonifor | Jun 02, 2023 18:01
Over the last month, CAD has been flat. Year-to-date, the loonie is down roughly 0.9%.
This is partly due to softness in oil prices.
In April, core inflation slowed to 4.1% from 4.3%. Headline, however, rose to 4.4% from 4.3%
House prices have also been weakening on the back of higher interest rates, with national prices turned negative year-over-year.
Building permits indicate this contraction could stall.
The labor market remains resilient however,as the unemployment rate is unchanged at 5% in April. Average hourly wages also stayed flat at 5.2% year-on-year in April.
Get The App
The difference was largely because of a substantial month-over-month increase of 6.3% in gasoline prices in April. 20 This was due to oil prices increasing on the 19 back of OPEC supply cuts. In our view, the CAD will likely underper- form at the crosses, given that more rate cuts are priced in the US, and that Canada is more vulnerable to higher rates.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.