The Canadian dollar was lower against its US counterpart on Tuesday before the weekly report on the American Petroleum Institute inventory. Oil prices have been softer since crude inventories showed no considerable shrinkage while production continues at near record levels. The USD got a boost from the housing data as building permits and housing starts were higher than last month.
Building permits in the US rose to 1.15 million and housing starts forecasts of the beast with an increase of 1.19 million. While low interest rates have kept the stable US housing sector, it was feared that demand was slowing. There will be some impressive gains in the housing market in the future, but for now the strong economic indicators in the US posted.
The correlation between the price of CAD and oil has made the currency a proxy for trading on the energy market. The loonie is linked at the hip with crude oil prices and despite the efforts of the Bank of Canada (BoC) and the Canadian addiction government on natural resources has proved difficult to diversify and is dragging economic growth down.
USD / CAD gained 0.559 percent in the last 24 hours. The pair is trading at 1.3036 after oil inventories are expected with lower levies. political upheaval in the UK and Turkey have had an impact of the global risk appetite with DAC caught in a flight to safety in the dollar and oil prices.
The Texas West Oil has lost 0.777 percent in the last 24 hours. The oil price is trading at $ 44.69 before the weekly inventory reports from the API and the US Energy Information Administration (EIA). The good news on the front of the oil is rising Indian demand for Iraqi crude with plans to add a strategic petroleum reserve to take advantage of cheap oil. The bad news is that Indian demand is not the shortfall weakens demand and supply continues pumping at near record levels. Without production disruption in the horizon, the laws of supply and demand have exerted downward pressure on the price of the black stuff.
Canadian data will be scarce this week with highlights coming Friday, July 22 with the release of the inflation and retail sales data. Overall, the European Central Bank (ECB) rate statement, Thursday, July 21 is strongly expected that the market widely expects President Mario Draghi to keep policy unchanged pending more data through the Brexit vote and impact its own quantitative easing program before digging deeper into unconventional monetary policy toolbox.
CAD traders will be on alert as the data of weekly oil inventory starts hitting the son. First with API data on Tuesday afternoon and Wednesday with the publication of the EIA crude stocks in the United States
CAD events to watch this week :.
Thursday, July 21
8:30 CAD Wholesale Sales m / m
Friday, July 22
basis from 8:30 CAD CPI m / m
8:30 CAD Core retail sales m / m
8:30 CAD CPI m / m
8:30 CAD retail sales m / m
Saturday, July 23
day 1 meetings ALL G20
* All times EDT
for a full list of events planned for the visit of the foreign exchange market the economic calendar MarketPulse
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