USD/CAD Steady Near 1.25 Ahead of Key Inflation Data from Canada
USD/CAD steady near 1.25 as traders and investors watch for the latest inflation data from Canada, the CPI report for October.
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- USD/CAD hovers near 1.25 as investors anticipate October’s inflation data from Canada
- Higher prices in major economies have cast a shadow on economic recovery and market growth
What’s Moving in the Markets?
The USD/CAD pair is trading fairly flat near 1.25 early Wednesday as traders anticipate key economic data. The inflation report from Canada will highlight the pace of price increase in the Canadian economy for October.
This said, market participants are prepared to see increased volatility in the Canadian dollar and in forex markets broadly.
This month, inflation data has been coming in hotter-than-expected from major economies, including the US and the UK. Last week, for example, the US consumer price report showed prices increased 6.2% in October, on an annualized basis. In other words, this was the biggest annual price growth in over 30 years.
In the UK, inflation data released today showed consumer prices rose 4.2% in October compared with same month a year ago. The figure was above the expected level of a 3.9% increase. It was also the highest price jump in 10 years.
What’s the Big Picture for Traders?
Against the backdrop of higher inflation, the wider financial markets are witnessing increased jitters and uncertainty. Moreover, the sharp jump in consumer prices casts a shadow over the swift economic rebound. As a result of price increases, companies have experienced supply-chain disruptions and other production-related obstacles.
Still, stocks in the US and Europe are looking up this week. Wall Street equities, on the one hand, finished Tuesday’s session on a high note. In more detail, the Dow Jones, the S&P500 and the Nasdaq Composite added between 0.1% and 0.8%.
Overseas, European markets notched their sixth-straight day of gains. More specifically, the region-wide Stoxx 600 inched up by just 0.1% on Tuesday. Today, bourses across the old continent remain positive and pointing to the upside.
US futures, in a similar fashion, are in the green in the early hours of Wednesday ahead of the regular session.
In individual stocks, traders will keep an eye on Tesla. Yesterday, the EV maker’s stock jumped 4% after a turbulent last week which knocked about 15% from its share price.
What’s the Latest on Cryptocurrency?
Bitcoin, the world’s biggest cryptocurrency, is floating below $60,000 today. Further, the orange coin slipped to a November low of $58,350 but buyers quickly stepped in and lifted the asset’s price.
Broadly, cryptocurrency trading propelled the digital asset market to a record high of $3 trillion last week. Presently, a downturn has taken place as traders are retreating their bets from risky cryptocurrencies.
Despite the current selloff in major tokens, crypto backers keep their optimism for the future. With this in mind, they expect the market to recover and continue on its upward trajectory. To this end, many traders could use the lower prices as entry levels and buy the dip.
Economic Data Coming Up Today (EST times)
Traders and investors today will watch for Canada’s inflation data. The Core CPI report for October is expected to be released at 08:30 am. Afterwards, the US reports its crude oil inventories at 10:30 am. Later, at 01:30 pm, European Central Bank President Christine Lagarde will have a speech.
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