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On January 27th, the Zhejiang Provincial Department of Culture and Tourism issued a document to support large-scale commercial performances such as concerts and music festivals held in Zhejiang Province, and to encourage performances to have their only national stop, premiere in Zhejiang, or begin their tour in Zhejiang. The document provides subsidies for eligible performance projects. On January 27th, a staff member from the Zhejiang Provincial Department of Culture and Tourism stated that, according to the document, eligible performance companies will receive subsidies ranging from 200,000 to 1 million yuan. Companies within the province, except for those in Ningbo, are eligible to apply.January 27th - The Fourth Session of the 14th Qinghai Provincial Peoples Congress convened today in Xining, with Qinghai Governor Luo Dongchuan delivering the government work report. The report outlines the main expected targets for Qinghais development in 2026 as follows: GDP growth of around 4.5%, striving for even better results; over 60,000 new urban jobs, over 1.06 million rural laborers transferred to other jobs, and an urban surveyed unemployment rate of around 5.5%; a consumer price index increase of around 2%; per capita disposable income growth in line with economic growth; total grain output maintained above 1.1 million tons; water quality of the main streams of the Yangtze, Yellow, and Lancang Rivers within Qinghai Province consistently maintained at Class I or above; air quality ranking among the best in the country; and achieving the national targets for carbon emission control and major pollutant reduction.On January 27th, Hong Kong stocks opened higher across the board, with the Hang Seng Index rising as much as 1.6%. At midday close, the Hang Seng Index stood up 1.07%, returning to the 27,000-point mark; the Hang Seng Tech Index rose 0.2%. Heavyweight tech stocks showed mixed performance, with Bilibili (09626.HK) surging over 5%, Alibaba (09988.HK) rising 2.18%, while JD.com (09618.HK), NetEase (09999.HK), and Tencent Music (01698.HK) fell over 1%. Gold stocks continued to rise, with Zijin Mining (02899.HK) up over 4% and Zijin Gold International (02259.HK) up over 10%, both hitting record highs. Insurance and banking stocks were also active. Meanwhile, steel, nuclear power, water, and coal stocks were mostly weak.The yield on Japans 30-year government bonds rose 3.5 basis points to 3.655%.Indian Oil Corporation executives said the company will source 50% of its oil through long-term contracts in fiscal year 2027.

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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