USD/CAD Continues Strengthening
USD to CAD exchange rate continues to strengthen on market attitude becoming increasingly pessimistic after the collapse of Silicon Valley Bank and another regional institution, and concerns over the fate of Credit Suisse , as investors seeking safety bolstered the US Dollar.
Risk aversion is typically tied inversely to the Canadian dollars value.
All the while, economic data from the United States has seen consumer spending drop 0.4% month over month vs. analyst predictions of a 0.3% contraction. January’s 3.2% increase and February’s data reveal that consumers are spending at a decreased rate. US Bureau of Labor Statistics has shown costss paid by producers in the month February, otherwise known as the PPI, went down 0.1% MoM, beneath forecasts of 0.3% jump. Core PPI unchanged, lower than a 0.4% increase that was expected by many, likely indicating signals that costs are finally decreasing amidst the Federal Reserve’s aggressive tightening cycle of this past year.
The largest factor as of now in the USD to CAD rate will continue to be market sentiment, unhelpful for the CAD’s continuing depreciation, likely making the Bank Of Canada’s struggle to rein in inflation increasingly complicated.
1 USD to CAD was 1.37 as of March 16th.