The Canadian dollar benefited from higher oil prices rebounded after US stocks petrol surprised with a more than expected drawdown. There are still concerns that the same energy stocks report showed an increase in crude inventories that will haunt the oil price. Risk appetite has been volatile and only got caught in a trading range dictated by the dollar and the price of crude.
After oil inventories released Canadian employment data today will be the culmination, but will be overshadowed by the US non-farm employment (NFP) released simultaneously. The market will focus on the eye NFP especially after the growing doubts about the growth of the United States.
The USD / CAD has lost 0.182 percent in the last 24 hours. The pair is trading at 1.3075 after oil prices gave a boost the Canadian dollar. The Canadian currency is strongly correlated with energy prices. The news of a lower stock of gasoline last week pushed the price of crude, although crude inventories were higher than expected.
The Canadian dollar navigates choppy waters after central banks around the world are faced with the difficult task of stabilizing markets. The DAC is caught between energy prices and expectations of economic growth in the United States. Volatility of crude and uncertainty about US growth following the disappointing GDP advanced were negotiating the Canadian currency a difficult proposition.
West Texas gained 3,435 percent in the past 24 hours. The price of crude is trading at 40.77 after a larger than expected withdrawal of gasoline inventories in the US have pushed prices higher. Crude inventories rose by 1.4 million barrels compared to the planned withdrawal by the same number of barrels, but the main driver was today down 3.3 per barrel in gasoline from the expected 0,000 barrels .
The withdrawal of petrol was a positive surprise for refiners, but given the rise in crude stocks in the energy prices could be under pressure in the short term. Organization of Petroleum Exporting Countries (OPEC) producers continue to pump at record levels with the world keeping the world well supplied, while the same time reductions in demand in Asia will keep the price of oil in the current range.
the ability of central banks to steer the market has declined as easing and stimulus more quantitative programs are launched to investors underwhelmed. The Bank of Japan (BOJ) and in a highly anticipated move the Bank of England (BoE) are looking for options to stimulate economic growth. The Bank of Canada (BoC) has been proactive last year, but with a limited toolbox given the low interest rates back to 0.50 percent, but now looking at a hybrid approach alongside Canadian government fiscal stimulus measures.
The Bank of England is the central bank next to face the judgment of the markets in the publication of the long awaited statement Thursday, August 4 at 07:00 EDT. The market awaits BoE Governor Mark Carney to deliver the goods in the form of a rate cut, and adding funds to the quantitative easing program. So far, the market may itself be setting up for a great disappointment Thursday Carney could not deliver on the rate cut, but that goes back to its prior guidance ways could point to a QE upgrade more sooner, rather than being forced into it as the European Central Bank (ECB)
market events to watch this week :.
Thursday, August 4
7:00 GBP BOE Inflation Report
Official Voters 7:00 am GBP MPC discount rate
7:00 monetary policy Summary GBP
7:00 GBP Official Bank rate
7:30 GBP BOE Gov Carney Speaks
8:30 USD unemployment claims
Friday, August 5
8: 30 CAD employment Change
8:30 CAD trade balance
8:30 CAD unemployment rate
8:30 am USD average hourly Earnings m / m
8:30 USD nonfarm Change employment
8:30 USD unemployment
* All times EDT
for a complete list of scheduled events in the forex market visit the economic calendar MarketPulse
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