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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MARKET INSIGHT
- The breakout in USDCAD, first above 1.32 in the days after US CPI strength and just now above 1.34 after yesterday’s Canadian CPI miss, pushes the pair to Sep’20 highs and further into pre-pandemic levels (2019 av circa 1.33).
- This is however largely a USD story: the BoC’s broad effective exchange rate – where the USD has a 46% weight – remains firmly within the year’s range whilst the CEER ex USD is the strongest from a CAD perspective since 2007.
- Much of this broader relative CAD strength is down to the EUR (13% weight) and less so CNY (14% weight).
- Compared to the 11% increase in USDCAD since its Jun’21 low, CAD has appreciated 10% vs the EUR and is largely unchanged vs CNY, helping push the nominal CEER just 3% weaker over the same period and limiting FX passthrough on CPI inflation.
Changes since 1 Jun 2021Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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