Dollar eases, focus on BoC today

Volatility has been low so far on Wednesday, but the USD remained under bearish pressure.

Earlier today, China’s PPI inflation jumped to its highest level since 2008, driven by surging commodity prices, increasing 9.0% year-on-year in May, a considerable leap from the 6.8% growth during the previous month. 

However, the Chinese CPI index rose only 1.3% year-on-year as the PPI inflation tends to lead the CPI inflation a bit so that we can expect a sharp increase in consumer prices soon.

Later in the day, the Bank of Canada will hold its meeting, and market participants do not forecast any changes to monetary policy. However, the following statement might be a bit hawkish. The USDCAD pair has been moving sideways over the previous weeks, and today’s BoC meeting might set a new trend.

From other news, the WTI oil reversed its yesterday’s losses and rose above the 70 USD threshold, with the next medium-term target at 75 USD.

Precious metals seem to be struggling for now as gold cant return above 1,900 USD, while silver failed to breach the 28 USD level again.

US stocks continue to consolidate, waiting for fresh impetus to set direction. 

Source: https://www.axiory.com/market-news/dollar-eases-focus-on-boc-today