Canadian Dollar extends losses with US Dollar strengthening across the board.
Mixed US PPI figures fail to offset risk-averse reaction triggered by Wednesday’s CPI figures completely.
USD/CAD keeps marching higher, 1.3740 and 1.3770 on bulls’ radar.
The Canadian Dollar (CAD) is selling off for the second consecutive day on Thursday. The Loonie has depreciated more than 1% over the last two trading days with the US Dollar appreciating across the board as investors dial down hopes of Federal Reserve (Fed) easing for 2024.
The US Producer Prices Index (PPI) has shown mixed data, with the headline figures accelerating below expectations but still offering hotter-than-expected core inflation. These figures have provided some relief but do not offset the risk-averse sentiment triggered by the high Consumer Prices Index (CPI) figures released on Wednesday.
Richmond Fed President Thomas Barkin has wondered if there is a shift in inflation trends and asked for some more time to start cutting rates. NY Fed CEO John Williams has shown a more dovish profile, stating that there will be a need to cut rates but that a hike is not on the cards at the moment. Later today the Fed’s Collins and Bostic will meet the press.
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