The loonie depreciated against the US dollar Wednesday by 0.529 percent in the last 24 hours . The USD / CAD touched 1.4380 session highs after the Department of Energy released crude oil inventories showed aa 230,000 gain when more than 2 million was expected, but the real insight on the numbers of last week was the great accumulation of gasoline and diesel with 8.4 million barrels of oil and 6 million respectively. The report led the West Texas below $ 30 for the second time in two days. The price later stabilized at $ 30.50.
The Canadian dollar was down 3.79 percent from December 15 after 2016 began with discouraging news from China and unrest among oil producers that led to a price war that production remains unchanged as demand for energy decreases. If the current conditions do not change the CAD could be on the road to reach all-time lows of 59 cents.
West Texas crude flirted with levels of prices below $ 30 Canadian for a few barrels of crude oil price is already $ 20. The rise and fall of oil prices is the story of a similar movement in the province of Alberta, where the majority of Canada's oil industry is located.
Economists at big banks are divided on what the Bank of Canada (BoC) will do. Some analysts are calling for a rate cut next week when the central bank meets on Wednesday, January 20. The fact is that the low oil prices is driving the currency lower, but it is bad for global growth economics based resources. A weaker dollar is not necessarily the solution that the Canadian manufacturing sector has not recovered and probably never will be against the effects of a stronger CAD following the crisis of 08. Exports increased, but not fast enough and with higher prices on imports inflation will be a concern.
Some analysts have even called for a fiscal stimulus take some of the weight of the Bank of Canada. Finance Minister Bill Morneau said all the right things about stimulus through government infrastructure and tax cuts, but shared the small details before March unveiling of the first budget of the Liberal government.
USD / CAD technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.4047 | 1.4112 | 1.4185 | 1.4323 | 1.4388 | 1.4461 |
Forex events to watch this week:
Thursday, January 14
7:00 Bank of England rate decision and minutes
Friday, January 15
8:30 USD Key sales retail
[ad_2]
Read More: USD/CAD Loonie Continues Downward Trend as US Oil Inventories Expand
0 Komentar untuk "USD/CAD Loonie Continues Downward Trend as US Oil Inventories Expand"