Canadian consumer prices hold as expected
At 12:30 GMT, the Canadian economy released its monthly reading of the consumer price index, which fell by 0.1% in September, on par with forecasts and August's reading. The CPI y/y reading rose 0.4% vs. 0.1% in the previous reading, beating forecasts of 0.3%.
The US dollar rose against its peers on Tuesday, to rebound from its 3-week low that hit yesterday. Investors focused on the corporate business results season for the third quarter, amid expectations improvement from the pandemic impact. The International Monetary Fund estimated the global GDP to shrink by 4.4% in 2020, but will grow by 5.2% in 2021. The IMF also warned in its October's report of a slowdown in the global recovery path from the coronavirus impact. Data showed today that the US consumer price index rose 0.2% in September, on par with economists' forecasts. The dollar index rose against a basket of currencies by 0.5% to 93.5 points as of 18:37 GMT, after it hit a high of 93.5 and a low of 93.03.
The US dollar fell against its rivals on Wednesday, to hit the lowest level since early September, as the market focus on the ongoing discussions about the second Covid-19 aid package in the US. US Treasury Secretary Steven Mnuchin met yesterday with some congressional leaders to narrow their differences and discuss the possibility of securing a deal on the $1.8 trillion stimulus package. Meanwhile, investors are also focusing on the corporate earnings season, with major firms releasing their business results, led by Netflix, Snapchat and a slew of US banks. The number of Covid-19 infections surpassed 40 million confirmed cases worldwide. While one of the volunteers has died during the clinical trials for the vaccine developed by AstraZeneca and Oxford University. The dollar index fell against a basket of currencies by 0.5% to 92.6 points as of 20:17 GMT, after hitting a high of 93.07 and a low of 92.4.
USD/JPY tilted higher in Asian trade off March 12 lows for the third session following earlier Japanese data and ahead of US data and Fed Chair Jerome Powell's testimony ahead of Congress. As of 07:15 GMT, USD/JPY rose 0.18% to 105.12, with an intraday high at 105.20. Earlier Japanese data showed the manufacturing PMI up slightly to 47.3 from 47.2, while industrial activities rose 1.3% as expected, slowing down from 6.8% in June. From the US, housing prices are expected up 0.4%, slowing down from 0.9%. US manufacturing PMI is expected down to 52.5 from 53.1, while the services PMI is expected down to 54.5 from 55. Federal Reserve Chair Jerome Powell will testify today ahead of Congress, while Federal Reserve Governor Randal Quarles is due to speak about the economic outlook at the Institute of International Bankers, via satellite.