EUR/USD 1.15107
0.159%
Gold 4012.32
0.836%
Oil 59.568
0.128%
USD/JPY 153.712
-0.259%
GBP/USD 1.30636
0.093%
GBP/JPY 200.813
-0.152%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
November 6th - The Bank of Englands meeting this month coincides with the eve of the autumn budget announcement at the end of the month, becoming another factor for policymakers to carefully weigh their options. The market widely expects Chancellor of the Exchequer Reeves to announce tax increases to fill the fiscal gap. Earlier this week, Reeves explicitly hinted at an imminent tax increase, suggesting he would consider raising income tax as a revenue-generating measure, but did not disclose specific details. Tax increases could further alleviate inflationary pressures by curbing consumer demand. Berenberg economist Andrew Wishart pointed out that if the budget includes measures to raise income tax, it will exacerbate the drag on real household income from high inflation and slowing wage growth. However, as these factors suppress demand, inflationary pressures may ease. If so, the Bank of England could cut interest rates by at least 25 basis points to 3.50% twice next year, and if fiscal austerity measures are implemented in advance, it will pave the way for a third rate cut to 3.25% in 2026.The Hang Seng Index closed up 550.49 points, or 2.12%, at 26,485.9 on Thursday, November 6; the Hang Seng Tech Index closed up 158.37 points, or 2.74%, at 5,944.22; the H-share Index closed up 192.73 points, or 2.1%, at 9,355.97; and the Red Chip Index closed up 59.33 points, or 1.44%, at 4,173.87.ExxonMobil (XOM.N): The Greek offshore project is expected to achieve its first gas supply between 2030 and 2035.ECB Executive Board member Schnabel: The launch of structured securities portfolios is still a long way off.According to Enterprise Singapore (ESG), as of the week ending November 5, Singapores light distillate fuel oil inventories fell by 556,000 barrels to a four-week low of 12.783 million barrels.

USD/CAD slips below 1.2870 as the DXY struggles above 104.000 and oil prices reach $110,000

Daniel Rogers

Jun 28, 2022 14:13

 截屏2022-06-28 上午10.15.54.png

 

After falling below the critical support level of 1.2870, the USD/CAD pair has declined to about 1.2860. As oil prices have extended their recovery and are currently trading over the psychological resistance of $110.00, it is expected that the asset will continue its losses and finish below 1.2860.

 

Notable is the fact that Canada is the United States' largest oil exporter. Therefore, higher oil prices lead to greater cash flows into Canada. Instead of focusing on advanced recession concerns, investors have decided to support current supply constraints, resulting in a strong oil price recovery.

 

After Western leaders banned Russian oil imports, the OPEC cartel is attempting to settle supply issues. Saudi Arabia and the United Arab Emirates (UAE) are the only OPEC members able to considerably expand the global oil supply. Both countries are seeing high prices and ample supply.

 

In the meanwhile, the US dollar index (DXY) fails to firmly above the 104.00 round-level barrier. As rapidly as the Federal Reserve (Fed) raises interest rates, concerns of a recession intensify. In its monetary policy statement for July, the Fed will certainly hike interest rates to at least 2 percent. A two percent interest rate is sufficient to restrict market liquidity in the United States. This will force the corporate sector to prioritize very selected investment projects, resulting in an extended drop in labor demand.


Suggestion