Economy Forex News

USD/CAD steady around 1.2365 amid falling crude oil prices

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  • The market mood is upbeat as U.S. stock indices trade higher.
  • Falling crude oil prices boost the outlook for the US dollar against the Canadian dollar.
  • BoC’s Tim Macklem: Global supply chain bottlenecks are not easing, meaning inflation may not be temporary as expected.
  • USD/CAD remains sideways during the US session and is trading at 1.2362.

USD/CAD remains sideways during the US session and is trading at 1.2362 at the time of writing. Previously, market sentiment was bearish due to higher inflationary pressures and central banks scaled back pandemic-era stimulus programs. U.S. stock indexes, however, posted gains of 0.24% and 0.52%. With the exception of the Dow Jones Industrials, which remains sideways at the time of publication.

USD/CAD

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Crude oil prices fall for the first time in eight days

Meanwhile, crude oil prices are falling. The U.S. benchmark Western Texas Intermediate (WTI) crude oil is trading at $81.55 per barrel, putting more pressure on the oil-linked Canadian dollar.

The U.S. dollar index, which measures the performance of the dollar against six peers, is down 0.04%, trading at 93.94. Treasury yields are rising, with the 10-year yield up two and a half points to 1.60%.

According to Bank of Canada Governor Tim Macklem, global supply chain bottlenecks are not abating as quickly as expected, meaning inflation in Canada and IMF members will likely take longer than expected to fall.

Bank of Canada’s Business Outlook Survey (BoS) for the third quarter revealed on Monday that business confidence continued to improve, with the BoS indicator reaching an all-time high of 4.73, up from 3.96 in the second quarter.

Supply constraints can limit sales and put upward pressure on costs, according to the report. In addition, 45% of the companies interviewed in the survey expect the Consumer Price Index to exceed 3% over the next two years. However, half of those companies say that “the drivers of higher inflation are temporary.”

On the U.S. economic agenda, Industrial Production contracted 1.3%, worse than the 0.2% increase expected by analysts. Additionally, capacity utilization fell from 76.2% in August to 75.2% in September.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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