Huitong Financial App News-- Asian time on TuesdayTiger'sTroveTrekThe exchange rate of the US dollar to the Canadian dollar is 1.Tiger'sTroveTrekIt is strong near 3675. Investors will keep a close eye on US April PPI and CPI during a week of lacklustre Canadian economic data, which will be released at 20:30 on May 14th and 20:30 on May 15th, respectively.
In recent weeks, several Fed officials have said that current US interest rates should remain high for longer to reduce inflation. At a news conference, Federal Reserve Chairman Colin Powell said that raising interest rates was "unlikely", but he did not completely rule out the possibility of raising interest rates. Powell stressed that more time is needed to gain "greater confidence" that US inflation is moving towards the Fed's 2 per cent target.
Lorie Logan, chairman of the Dallas Fed, said there were upward risks to US inflation, adding that it was too early to cut interest rates. Talk of a longer period of high interest rates in the US could support the dollar and create a temporary boost for the dollar against the Canadian dollar. On the other hand, the fall in crude oil prices continues to drag down the commodity-linked Canadian dollar, as Canada is a major oil exporter to the United States. Nonetheless, upbeat Canadian job market data for April may persuade the Bank of Canada to wait longer to ensure that inflation continues. In turn, this may limit the downlink space of the Canadian dollar.
The next decision of the Bank of Canada will be held on June 6th.
Daily chart of the US dollar against the Canadian dollar source: Yihuitong 11:50 Beijing time on May 14, the US dollar against the Canadian dollar was 1.3678Shop 80