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Canada's economy expanded 3.1% annualized in the first quarter, above forecasts, which increased odds of a Bank of Canada rate hike. The Canadian dollar strengthened after the data but remained down 0.2% at 1.3630 per U.S. dollar as oil prices fell.
Higher rate-hike expectations support the Canadian dollar, which tends to lower the cost of Canadian exports in US dollars only marginally for feed commodities. Oil weakness is the main offsetting pressure on the currency.
reuters.comIsmail Shakil, Steve SchererMay 31, 2023Not enough comparable past events yet for a historical read.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
