- February 13, 2025
- Posted by: Melanie Scott
- Category: Market News
USD is at a two-month low against CAD today, making it a great day for USD buyers to take advantage of the market.
This dip follows the latest inflation data, with both CPI and PPI coming in hotter than expected:
- PPI (Producer Price Index) rose 0.4% MoM, exceeding the 0.3% forecast.
- CPI (Consumer Price Index) increased 0.5% MoM, also above the expected 0.3%.
PPI is typically an upstream indicator of CPI, meaning higher producer costs are likely to push consumer prices up further. With these inflationary signals, market sentiment is shifting—investors are questioning whether the Fed will be able to cut rates at all this year, whereas earlier projections anticipated at least two cuts in 2025.
Additionally, US jobless claims came in lower than expected at 213k vs. 217k forecast, bringing the 4-week average down to 216k. However, this hasn’t moved rates much, as inflation concerns are dominating market reaction.
In the UK, Gross Domestic Product rose 0.4% compared to the expected 0.1% increase. The overall jump is largely due to growth in the service sector. Between this report and the US data, the GBP is up 0.68% against USD from yesterday’s close.
Current Market Conditions:
| USDCAD | -0.54% |
| EURUSD | +0.44% |
| AUDUSD | +0.18% |
| GBPUSD | +0.68% |
| EURCAD | -0.11% |
| AUDCAD | -0.36% |
| GBPCAD | +0.12% |
| DXY | -0.51% |
| USOIL | +0.16% |
Take control of your FX exposure and make informed decisions—contact Bendix today to explore tailored solutions for managing currency risk.