FX TALKING POINTS:
- USD/CAD Tumbles to Fresh Monthly-Low Following Lackluster U.S. Consumer Price Index (CPI). Bearish Series Takes Shape Ahead of Canada Employment Report.
- NZD/USD Eyes November-Low (0.6780) as Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr Endorses Wait-and-See Approach for Monetary Policy.
USD/CAD continues to give back the advance from the previous month as fresh data prints coming out of the U.S. economy highlight a limited risk for above-target inflation, with the pair at risk for a further decline as Canada’s Employment report is anticipated to show a 20.0K expansion in April. In contrast, the New Zealand dollar remains under pressure as the Reserve Bank of New Zealand (RBNZ) keeps the cash rate at the record-low of 1.75%, and NZD/USD appears to be on track to test the November-low (0.6780) as it extends the bearish sequence from earlier this week.
USD/CAD TUMBLES TO FRESH MONTHLY-LOW FOLLOWING LACKLUSTER U.S. CONSUMER PRICE INDEX (CPI)
USD/CAD slips to a fresh monthly-low (1.2743) as updates to the U.S. Consumer Price Index (CPI) dampen bets for four Fed rate-hikes in 2018, and the exchange rate stands at risk for further losses as it carves a fresh series of lower highs & lows.
Despite the uptick in the headline print, a deeper look at the report showed the core CPI holding steady at an annualized 2.1% for the second straight month in April, while growth in Real Average Hourly Earnings narrowed to 0.2% from a revised 0.3% in March.
Keep in mind, the recent developments should keep the Federal Open Market Committee (FOMC) on course to further normalize monetary policy as the central bank largely achieves its dual mandate,