Connect with us

Forex

Inflation accelerates at the start of Q4  – Wells Fargo

Published

on

Economists from Wells Fargo, noted that driven by trade services, but showing gains elsewhere, headline PPI increased a stronger-than-expected 0.4% in October. They pointed out that core producer prices were also up solidly on the month, supporting firming inflation.

Key Quotes: 

“For the second consecutive month, PPI-final demand beat expectations in October. Trade services led the charge, up 1.1 percent, with nearly half of the increase attributed to retailer fuel margins. Wholesale energy prices were flat following solid gains in the prior two months, and wholesale food prices increased 0.5 percent. Core goods prices posted another solid monthly performance, largely due to higher pharmaceuticals.”

“Core producer prices, excluding energy, food and trade services, increased 0.2 percent for the third straight month. The yearover-year pace reached a fresh record high at 2.3 percent. While not the primary measure of inflation, the consistent gradual improvement in producer prices over the past two years will be welcomed by Fed officials who, on balance, continue to express confidence in a gradually rising inflation outlook.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Forex

USD/CAD flirting with lows, around mid-1.2700s

Published

on

   •  Extends overnight retracement on renewed USD weakness.
   •  Surging crude oil prices aggravating selling pressure.
   •  US durable goods/FOMC minutes eyed for fresh impetus.

The USD/CAD pair extended overnight retracement from 2-1/2 week tops and is currently placed at the lower end of its weekly trading range, around mid-1.2700s.

On Tuesday, the pair touched an intraday high level of 1.2837 but failed to build on the up-move amid some renewed US Dollar selling pressure. Traders even shrugged off an unexpected decline in the Canadian wholesale sales and better-than-expected existing home sales data from the US, with sliding US Treasury bond yields prompting some fresh US selling.

With the greenback holding weaker, a strong rally in crude oil prices underpinned the commodity-linked currency – Loonie and continued weighing on the major for the second consecutive session on Wednesday. Oil prices rose sharply on Canadian pipeline disruption to the United States, which added to the positive news of a fall in the US crude oil inventories and prolonged OPEC-led production cut. 

Later during the NA session, the US economic docket, featuring the release of durable goods orders and weekly crude oil inventories, would now be looked upon for some immediate respite for the USD bulls. The focus, however, would be on the FOMC meeting minutes, which would drive the buck in the near-term and provide some fresh directional impetus. 

Technical levels to watch

A follow-through weakness below mid-1.2700s is likely to get extended towards the 1.2700 handle before the pair eventually drops to test 1.2670-60 strong horizontal support.

On the upside, 1.2770-75 area now seems to act as an immediate resistance, above which the pair is likely to move past the 1.2800 handle and retest 1.2835 supply zone. 
 

Continue Reading

Forex

iFOREX Daily Analysis : November 01,2017

Published

on

iFOREX Daily Analysis : November 01,2017

Continue Reading

Recent Posts

Trending