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On April 4, the Yangtze River Delta Railway ushered in the peak of passenger flow during the Qingming Festival. It is expected to send 4.1 million passengers today, 365,000 more than the same period last year, an increase of about 9.8%, and is expected to set a new record for single-day passenger volume. This years Qingming Festival railway transportation will start from April 3 to 7. The Yangtze River Delta Railway is expected to send 17.6 million passengers in 5 days, with an average daily passenger flow of 3.52 million, a year-on-year increase of 6.8%.The yield on the two-year U.S. Treasury note fell to a six-month low of 3.6550% and was last at 3.6611%.On April 4, local time on April 3, U.S. Secretary of Health and Human Services Robert Kennedy Jr. said that about 20% of the layoffs in the Department of Government Efficiency were wrong and needed to be corrected. The U.S. Department of Health and Human Services laid off about 10,000 people on the 1st. Kennedy said that people who should not have been laid off were laid off, and the department is restoring their positions. Kennedy said that canceling the entire lead poisoning prevention and monitoring department of the Centers for Disease Control and Prevention was one of the mistakes. At present, it is unclear what other projects Kennedy may plan to restore.Bank of Japan Governor Kazuo Ueda: Will consider the impact of food costs on consumers.On April 4, local time on the 3rd, the automobile company Stellantis said that due to the impact of the US import automobile tariff policy, the company decided to lay off 900 employees in its five US factories and suspend production operations at two assembly plants in Canada and Mexico. Antonio Filosa, Chief Operating Officer of Stellantis Americas, said that the US factories that were laid off were powertrain and stamping parts factories, which produced spare parts for two assembly plants in Canada and Mexico. According to the plan, the assembly plant in Canada will stop production for two weeks, and the assembly plant in Toluca, Mexico will suspend production throughout April. Filosa said the company is "continuing to evaluate the medium- and long-term impact of tariffs on operations."

USD/CAD rebounds to 1.2950 on lower oil, risk aversion ahead of Powell's Fed speech, and BOC inflation data

Alina Haynes

Jun 22, 2022 14:48

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During Wednesday's Asian session, USD/CAD bulls return to the table following a two-day vacation as the price refreshes its intraday high over 1.2950. In doing so, the Loonie-U.S. dollar pair reflects a higher U.S. dollar with the market's risk-averse mindset anticipating Fed Chair Jerome Powell's speech. The drop in oil prices, Canada's most significant export commodity, helps to the upswing.

 

With the Fed's aggressiveness and the US recession raising concerns, the US Dollar Index (DXY) achieves its first daily gain of the week at approximately 104.60. Joe Biden, the Vice President of the United States, and Janet Yellen, the US Treasury Secretary, both tried to reassure investors that a recession was not imminent. US economy will not return to past decade of stable growth, employment and inflation, according to Thomas Barkin, president of the Federal Reserve Bank of Richmond, as reported by Reuters.

 

In contrast, WTI crude oil prices have touched a new monthly low of around $108.00, a fall of 1.5 percent as of press time, as US President Biden argues for reduced energy costs. After U.S. President Joe Biden attempted to lower rising fuel costs by putting pressure on large U.S. firms, oil prices dipped in the early trade of Wednesday, as reported by Reuters. Notable is the fact that Biden plans to suspend the federal gas tax to lower energy prices.

 

Canadian retail sales rose by 0.9 percent in April, above expectations of 0.8 percent and an earlier upwardly revised 0.2 percent, according to data released on Tuesday. There was a two-year low in the number of annualized existing home sales in the US. Chicago Fed's National Activity Index fell to 0.01 in May from an upwardly revised 0.04 in April, further demonstrating the weakening of the economy.

 

Ahead of Fed Chair Jerome Powell's key testimony, the USD/CAD is predicted to witness additional gains due to the recent risk-aversion wave that has backed the US dollar's recovery advances and has also favored oil bearish. Important to follow for May is the Bank of Canada's (BOC) Consumer Price Index Core, which is predicted to grow 5.9 percent year-over-year compared to 5.7 percent in April. An rise of 1% is expected in March, up from 0.6% the previous month, according to expectations for the Canadian Consumer Price Index (CPI).

An Examination of the Technical Aspects

Despite the current rebound, purchasers of USD/CAD remain cautious because the quotation has maintained the previous day's break to the downside of an ascending trend line from June 8th. (now 1.3090).


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