These are the average exchange rates of these two currencies for the last 30 and 90 days. What is clear, though, is that the Houthi assault on global trade will not scupper supply chains. It is a severe threat nonetheless – and all the more so for the seafarers whose lives remain at risk. That’s not to say that all this rerouting of huge cargo ships does not have serious consequences. There are already reports of increased costs that will likely get passed on to consumers. High fees certainly aren’t a barrier to the manufacturers reportedly choosing to send their products and components by air freight at the moment, rather than risk delays to their supply lines.
Interest rates and their fluctuations have always played a significant role in shaping the global financial markets. Given the dramatic interest rate tightening cycle we are currently experiencing, it’s important to understand their impact on the foreign exchange market. Check live rates, send money securely, set rate alerts, receive notifications and more. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
If fourth-quarter growth is confirmed, it would mean Canada has missed falling into a technical recession, defined as two consecutive quarters of negative growth. Canada’s main stock index opened higher Wednesday in the wake of a stronger-than-forecast reading on economic growth in November. Wall Street saw a lower start with weakness in Alphabet shares weighing on the tech-heavy Nasdaq.
The crew of the MV Genco Picardy – which was carrying phosphate rock – were unharmed and were able to extinguish the fire caused by the incendiary drone. Just look for the grisly black scorch marks staining the ship’s white paint. On 17 January, the MV Genco Picardy, a US-owned bulk carrier, became the latest victim of Houthi rebel assaults on commercial ships sailing through the Red Sea.
Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall. An estimated 12% of global trade passes through the Red Sea every year, worth more than $1tn (£790bn).
Someone else who has been watching the crisis unfold is Anna Nagurney, an economist at the University of Massachusetts, Amherst. There were already significant choke points in global trade, including reduced flows through the drought-stricken Panama Canal, which connects the Pacific Ocean to the Atlantic. Steering clear of the Red Sea and taking the lengthy detour around the Cape of Good Hope, however, adds around 3,500 nautical miles (4,000 miles/6,500km) and days sailing time to each trip. This requires extra fuel (an additional $1m/£790,000’s worth according to some estimates), possibly finding alternative ports of call, adjustments to delivery timetables, and rising costs. But many companies are making that choice rather than risk attack by missiles and hijackers. Crude prices were weaker in early trading after disappointing factory activity data out of China, although both Brent and West Texas Intermediate looked set for monthly gains.
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“The Chinese manufacturing sector remains under pressure amid a weak domestic recovery and poor external demand,” said Lynn Song, chief economist at ING bank, in a note. Sentiment took a hit early Wednesday after new figures showed manufacturing activity in China, one of the world’s top consumers of crude, contracted for a fourth consecutive month in January. The day range on Brent was US$81.85 to US$82.94 in the early premarket period. The range on West Texas Intermediate was US$76.77 to US$78.11.
“Overall, I believe it is premature to expect a rate cut as soon as March,” Morgane Delledonne, head of investment strategy for Europe with Global X, said. EUR/USD faces increasing volatility and now navigates the lower end of the weekly range on the back of the sudden bout of strength in the greenback, all after Powell said a rate cut in March looks unlikely. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. The broad market focus this week continues to be Wednesday’s US Federal Reserve (Fed) rate call.
These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest automated trading points the exchange rate has been at in the last 30 and 90-day periods. A case in point is how the Ukrainians have adapted to the threat posed to their grain ships by the Russian navy in the Black Sea.
The IFC Consensus Canadian Dollar Forecast is based on the aggregation of forecasts by major Canadian and Global banks and trading houses. The methodology used to calculate the forecast takes into account, among other things, https://bigbostrade.com/ the historical accuracy of the forecaster as well as other factors deemed relevant. Short Term refers to forecast for the end of the current quarter. The IFC Canadian Dollar Consensus Forecast is updated periodically.