Apr 16, 2025 (Baystreet.ca via COMTEX) --
- Analysts are divided as to a BoC rate hold or cut decision.
- Fed Chair Powell on tap this afternoon
- US opens mixed but trading with a negative bias.
USDCAD: open 11.3912, overnight range 1.3904-1.3966, close 1.3959, WTI 61.85, Gold 3305.05
The Canadian dollar sank yesterday after weaker than expected Canadian inflation raised the odds for a rate cut of 25 bps to 2.50% at today's meeting. The rally was supported by a report that Honda Canada would move 90% of Canadian production to the US. Honda's Canadian president denied that there were any such plans however, the executive management team in Japan, who are the decision makers did not say anything. Where there is smoke, there is fire.
Fed Chair Jerome Powell is speaking in Chicago this afternoon and traders are wondering if he will echo the dovish outlook espoused by Fed Governor Christopher Wallers on Monday
Global equity indexes are trading negatively. In Asia, Japan's Topix dipped 0.61%, Hong Kong's Hang Seng slid 1.91%, and Australia's ASX 200 finished essentially unchanged. European equity indexes are also underwater, with the German DAX off by 0.45% and France's CAC 40 down 0.54%. S&P 500 futures have shed 0.66%. The U.S. 10-year Treasury yield is holding at 4.33%, and gold (XAUUSD) carved out a fresh record high at 3318.00.
EURUSD traded in a 1.1281-1.1393 range and clawed back earlier losses, with momentum building toward a break above 1.1390 that could open the door to 1.1470. The euro's strength comes despite underwhelming EU/US trade discussions, with no relief from the 20% U.S. tariffs on European imports. Eurozone March inflation figures landed right on expectations.
GBPUSD ranged between 1.3222 and 1.3293, extending its upward grind and setting its sights on resistance at 1.3310, with bulls eyeing the 2024 high of 1.3333. Softer inflation and retail price data gave the rally some fresh legs, as headline CPI eased to 2.6% from February's 2.8% year-over-year pace.
USDJPY moved in a 142.05-143.28 band and drifted lower on renewed demand for safe-haven yen amid deepening U.S.-China trade friction. Sentiment soured further after China reportedly paused Boeing aircraft deliveries, a move that irked Trump. Meanwhile, the Bank of Japan is expected to maintain interest rates but trim its 2025 GDP outlook at its upcoming May 1 meeting, according to Reuters.
AUDUSD traded within a 0.6323-0.6378 range and held relatively steady as traders await fresh catalysts. The Aussie's recent rally appears to be stalling near the 0.6400 threshold, leaving the pair vulnerable to a pullback if sentiment shifts.
Todays major US data includes US Retail Sales
COMTEX_464614878/2559/2025-04-16T11:57:33
