Disinflation Progress Spurs Loonie Decline, Euro Climbs on Wage Data
| Action Insight Mid-Day Report 2-20-24 |
Disinflation Progress Spurs Loonie Decline, Euro Climbs on Wage Data |
Canadian Dollar weakens broadly in early US session, sparked by data indicating a stronger-than-anticipated progress in disinflation. Headline CPI fell below the 3% mark, accompanied by significant easing in core inflation measures. This development potentially opens the door for BoC to consider an interest rate cut sooner than anticipated, with the second quarter now appearing as a viable window for such a policy adjustment. Conversely, Euro surges earlier today, buoyed by data from ECB's wage tracker that reported only a marginal decrease in wage growth. Although this slight dip may be viewed as a positive sign, it does not sufficiently alleviate pressures to prompt an immediate rate cut in March. With wage pressures remaining on the higher side, a rate cut by ECB is more feasibly expected around June rather than April... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0765; (P) 1.0777; (R1) 1.0792; More... EUR/USD's break of 1.0804 resistance suggests short term bottoming at 1.0694, on bullish convergence condition in 4H MACD. Intraday bias is back on the upside for stronger rebound. Sustained above 55 D EMA (now at 1.0833) will argue that fall from 1.1138 has completed and target this resistance. Meanwhile, rejection by 55 D EMA, followed by break of 1.0694, will resume the fall from 1.1138 to 1.0447 support. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 00:30 | AUD | RBA Meeting Minutes | | 01:15 | CNY | PBoC 1Y Loan Prime Rate | 3.45% | 3.45% | 3.45% | | 01:15 | CNY | PBoC 5Y Loan Prime Rate | 3.95% | 4.10% | 4.20% | | 07:00 | CHF | Trade Balance (CHF) Jan | 4.74B | 2.35B | 1.25B | 1.27B | | 09:00 | EUR | Eurozone Current Account (EUR) Dec | 31.9B | 20.3B | 24.6B | 22.5B | | 13:30 | CAD | CPI M/M Jan | 0.00% | 0.40% | -0.30% | | 13:30 | CAD | CPI Y/Y Jan | 2.90% | 3.30% | 3.40% | | 13:30 | CAD | CPI Median Y/Y Jan | 3.30% | 3.60% | 3.60% | | 13:30 | CAD | CPI Trimmed Y/Y Jan | 3.40% | 3.60% | 3.70% | | 13:30 | CAD | CPI Common Y/Y Jan | 3.40% | 3.80% | 3.90% |
|
|
|
