Canadian Dollar on weaker footing approaching the closing bell.
Canada foreign investment barely moved the needle.
US PPI numbers came in above expectations, hampering rate cut bets.
The Canadian Dollar (CAD) broadly stuck to the middle ground on Friday, finding little room in either direction against the majority of its major currency peers heading into the week’s closing bell.
Canada saw a beat in December’s Foreign Portfolio Investment in Canadian Securities, but overall markets saw attention drawn away for the US Producer Price Index (PPI), which printed above expectations. CAD traders will be looking forward to Canadian Consumer Price Index (CPI) inflation figures due next Tuesday, and rate-cut seekers will be keeping an eye out for the Federal Reserve’s (Fed) latest Meeting Minutes will be dropping on markets next Wednesday.
Daily digest market movers: Quiet Friday sees the Canadian Dollar strung along the middle
Foreign Portfolio Investment in Canadian Securities grew by $10.44 billion in December, well over the $-6.45 billion forecast. The previous month’s figure saw a minor revision to $11.31 billion from $11.43 billion.
US Core annualized PPI grew by 2% in January, over the 1.6% forecast and above the previous period’s 1.7% (revised from 1.8%).
The Michigan Consumer Sentiment Index rose for February, but less than expected, printing at 79.6 versus the forecast 80.0, up from January’s 79.0.
The University of Michigan 5-year Consumer Inflation Expectations held steady at 2.9%.
According to the CME’s FedWatch Tool, money markets see a 70% chance of no rate movement from the Fed in May, and June is now on the block as the first rate trim meeting.
Next week’s Canadian CPI is forecast to tick down to 3.3% from 3.4% for the year ended January.
MoM Canadian CPI in January is expected to rebound to 0.4% from December’s -0.3%.
The Fed’s latest Meeting Minutes will be dropping next Wednesday, and investors will be diving into the Federal Open Market Committee’s latest discussions for hints about how close the Fed might be to pivoting into rate cuts
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.