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According to the Financial Times, GameStop (GME.N) CEO Ryan Cohen has threatened to submit its $56 billion takeover bid for eBay directly to shareholders.Cisco (CSCO.O) shares surged 20% in after-hours trading after its earnings guidance exceeded expectations.May 14 - According to Chadian media reports on May 13, a fire broke out at a fuel depot in Abeyche, the capital of the Vadai region in eastern Chad, on the evening of May 12, injuring more than 200 people. The Chadian News Agency reported that the fire occurred in the southern part of Abeyche. According to the Vadai regions health department, medical institutions have treated 206 injured people, and 53 are still under medical observation. The report stated that Chadian Deputy Prime Minister Limana Mohamed has led government officials to the scene to assess the damage and has ordered the local government to relocate all oil depots located in the city to the suburbs within 10 days.On May 14th, Futures News reported that crude oil prices rose for the third consecutive day on Wednesday. The current change rate narrowed, and refineries, facing significant losses, showed a strong willingness to maintain prices. However, crude oil prices declined during the session, leading to caution in the market. Gasoline rose by approximately 50 yuan/ton, and diesel by 20-50 yuan/ton. Terminal buyers focused on digesting existing inventory and purchasing only as needed, resulting in a flat trading atmosphere. The gasoline production-to-sales ratio was 70%, and the diesel production-to-sales ratio was 71%. Major oil companies prioritized sales, with listed prices rising slightly in tandem, while actual transaction discounts were offered. The average price of 0# diesel was 7833 yuan/ton, up 77 yuan/ton from the beginning of the week; 92# gasoline was 8771 yuan/ton, up 42 yuan/ton, narrowing the gap with independent refineries. Looking ahead, the change rate remains in negative territory, and with the month approaching its middle, major oil companies are likely to promote sales to boost volume. The market may consolidate sideways in the short term, with sporadic localized weakening. Industry data shows that since the beginning of this year, the retail price limit for gasoline has been raised multiple times, gradually increasing the cost of using gasoline vehicles and reducing the enthusiasm for driving. In April, gasoline consumption decreased by 19.3% month-on-month and 21.08% year-on-year. Meanwhile, new energy vehicles are developing rapidly, with sales increasing significantly year-on-year and ownership increasing by 33.8% year-on-year. The penetration rate has once again exceeded 53%, and in April, new energy vehicles accounted for 29.54% of gasoline consumption.Dallas Fed President Logan, a 2026 FOMC voting member, will participate in a dialogue about the energy industry in ten minutes.

USD/CAD Trades at a Flat Level Following Volatile Trading and Rising US Treasury Yields

Drake Hampton

Apr 06, 2022 10:16

Insights

  • The dollar fell as additional penalties against Russia weighed on the Loonie.

  • Benchmark rates increased as the Federal Reserve pursued a more aggressive rate hike strategy.

  • Due to the new penalties, gold and silver prices remained rather stable.

  • As European countries ponder further measures, oil prices continue to rise.

 

Despite a volatile trading session, the dollar maintained its strength as higher oil prices bolstered the commodity-linked Loonie. The yield on ten-year government bonds increased to 2.56 percent, the highest level since May 2019. Benchmark rates increased several basis points following Fed Governor Brainard's statement that the Fed must pursue a more aggressive stance to contain inflation. Commodity-linked currencies such as the Loonie increased in value as a result of higher oil prices and good economic indicators. New sanctions against Russia continue to benefit silver and gold prices. On the potential of fresh Russian sanctions, oil prices continued to increase. Investors are awaiting the release of the minutes from the most recent FMOC meeting on Wednesday.

 

Today, the US released its February trade balance. Actual balance of -$89.2 billion was lower than predicted at -$88.5 billion. The reading stayed relatively stable compared to the previous month, indicating a record deficiency. Exports increased by 1.8%, while imports jumped by 1.3 percent. In the following months, the Russia-Ukraine war may limit demand for US exports.

Technical Evaluation

The USD/CAD exchange rate remained unchanged following a recovery from the downward pressure caused by increased oil prices, which supported the Loonie. However, losses should be contained as a result of the Fed's more aggressive rate hikes. The pair remains below the key level of 1.25 and may be driven lower as additional penalties against Russia increase. Resistance is located near the 10-day moving average, which is now at 1.25. Near today's lows near 1.24, support is seen. A break below support would reveal the daily low of 1.2387 from November 10th, signaling further downward pressure. The short-term momentum shifted to the upside when the fast stochastic crossed above the buy signal.

 

Although the MACD line generated a crossover sell signal, the medium-term momentum is negative but favorable. When the MACD line (the 12-day moving average minus the 26-day moving average) passes the MACD signal line, this scenario occurs (the 9-day moving average of the MACD line).

 

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