EUR/USD 1.17680
-0.099%
Gold 4681.77
-0.890%
Oil 95.420
3.704%
USD/JPY 156.886
0.103%
GBP/USD 1.35956
-0.235%
GBP/JPY 213.303
-0.131%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
1. Monday: ① Data: Chinas April CPI year-on-year rate, Chinas April M2 money supply year-on-year rate (pending); US April existing home sales (annualized). ② Events: US Treasury Secretary Bessenter visits Japan, meeting with the Japanese Prime Minister, Bank of Japan Governor, and Finance Minister. 2. Tuesday: ① Data: Germanys final April CPI month-on-month rate, Germanys May ZEW economic sentiment index; Eurozones May ZEW economic sentiment index; US April NFIB small business confidence index, US ADP employment change for the week ending April 25, US April unadjusted CPI year-on-year rate, US April seasonally adjusted CPI month-on-month rate, US April seasonally adjusted core CPI month-on-month rate, US April unadjusted core CPI year-on-year rate. ② Events: Bank of Japan releases summary of opinions from April monetary policy meeting deliberation committee members; FOMC permanent voting member and New York Fed President Williams participates in a panel discussion on monetary policy; JD.com earnings call. 3. Wednesday: ① Data: US 10-year Treasury auction (May 12) - winning rate, US 10-year Treasury auction (May 12) - bid-to-cover ratio, US API and EIA crude oil inventory data for the week ending May 8; Japans March trade balance; Frances Q1 ILO unemployment rate, Frances final April CPI month-on-month rate; Eurozones Q1 GDP annual rate (revised), Eurozones Q1 seasonally adjusted employment quarter-on-quarter rate (preliminary), Eurozones March industrial production month-on-month rate; US April PPI annual rate, US April PPI month-on-month rate. ② Events: Vice Premier He Lifeng will lead a delegation to South Korea from May 12th to 13th for trade consultations with the US; the EIA will release its monthly Short-Term Energy Outlook report; OPEC will release its monthly oil market report; Chicago Fed President Goolsby will participate in a Q&A session hosted by the local Chamber of Commerce; the IEA will release its monthly oil market report; Alibaba will hold its earnings call; Tencent will hold its earnings call; and 2028 FOMC voting member and Boston Fed President Collins will speak at the Boston Economic Club. 4. Thursday: ① Data: UK Q1 GDP annual rate (preliminary), UK March three-month GDP monthly rate, UK March manufacturing output monthly rate, UK March seasonally adjusted goods trade balance, UK March industrial production monthly rate; Canada March wholesale sales monthly rate; US initial jobless claims for the week ending May 9th, US April retail sales monthly rate, US April import price index monthly rate, US March business inventories monthly rate, and US EIA natural gas storage for the week ending May 8th. ② Events: 2026 FOMC voting member and Minneapolis Fed President Kashkari participates in a discussion hosted by the local chamber of commerce; the Bank of Canada releases the minutes of its monetary policy meeting; 2026 FOMC voting member and Dallas Fed President Logan participates in a dialogue on the energy industry. 5. Friday: ① Data: US May New York Fed Manufacturing Index, US April Industrial Production MoM; China April Total Electricity Consumption Year-on-Year (Pending), China April Total Electricity Consumption (Pending). ② Events: Powells term as Fed Chair ends; 2026 FOMC voting member and Cleveland Fed President Hamak delivers opening remarks at an online discussion on central bank independence; Fed Governor Barr speaks; FOMC permanent voting member and New York Fed President Williams participates in a discussion. 6. Saturday: ① Data: US total oil rig count for the week ending May 15.US President Trump posted on social media criticizing Fox News for biased support of Democrats and lying.U.S. stock index futures opened slightly lower on Monday.Iranian Foreign Ministry: The Iranian Foreign Minister spoke with the Dutch Foreign Minister and exchanged views on bilateral relations and the latest regional and diplomatic developments.1. According to TASS: Russia says it has resumed flights at its southern airports. 2. Zelensky says Ukraine has submitted a list of 1,000 prisoners of war for exchange to Russia. 3. Zelensky: Russia has not complied with the US-brokered ceasefire agreement on the front lines. 4. According to TASS: The Kremlin says Russia wants Armenia to provide clarification regarding Zelenskys visit. 5. Russian presidential aide: US Presidential envoy Witkov and Trumps son-in-law Kushner will arrive in Moscow "soon," and Russia will continue dialogue with them.

The USD/CAD Exchange Rate Advances Towards 1.2600 Due to Low Oil Prices

Larissa Barlow

Apr 11, 2022 09:55

  • The USD/CAD is edging closer to last week's high of 1.2620 as bears target the oil sector.

  • Reduced supply concerns and declining demand in China have resulted in a decline in oil prices.

  • The DXY is predicted to move in an unpredictable manner ahead of the US CPI.

 

The USD/CAD pair is blowing out of its consolidation range, which was 1.2562-1.2578 in the early Asian session due to plummeting oil prices and a jump in the US dollar index (DXY) following a bearish initial breach below 100.00.

 

Oil prices are extending last week's losses as supply fears ease and demand declines as a result of China's harsh limitations on Covid-19. The International Energy Agency (IEA) intends to release 60 million barrels from its strategic stockpiles over the next six months, implying an additional two million barrel release. Earlier this month, US Vice President Joe Biden said an additional one million barrels of oil would be released from the US Strategic Petroleum Reserve for a six-month period (SPR). Reduced supply concerns combined with increasing oil production by countries may result in a correction of oil prices. However, it would be fascinating to see how much additional oil is released to compensate for the shortage in Russian oil caused by Western rivals' harsh sanctions.

 

On the demand side, China's government has put Shanghai, the country's most populous city, under its 'zero tolerance' category in order to control the Covid-19's escalation. China is the world's largest importer of oil, and any decline in demand from the colossus will wreak havoc on oil prices.

 

Reduced supply concerns and declining demand will continue to support the greenback against the loonie in the future. Canada, as the largest oil exporter to the US, will see a decline in inflows as oil prices fall.

 

The DXY is likely to exhibit significant swings ahead of Tuesday's release of US inflation data. While the Bank of Canada's (BOC) interest rate decision on Wednesday is critical.

USD/CAD

image.png 

Suggestion