The Canadian dollar rose 10 Month High After Oil Price Surge
weakness the dollar before the April Federal Open Market Committee (FOMC) Wednesday, April 27 2:00 pm EDT gave the CAD some traction to enjoy with the price of crude. The Canadian dollar is trading below 1.26 for the first time since July 2015. West Texas crude is back above $ 44 in anticipation of lower than expected stocks in the US The replica of the failure of the Doha agreement has not really hit the market with production still near record levels. High prices encourage producers to keep pumping and could bring online projects halted due to falling prices.
The USD / CAD has lost 0.388 percent in the last 24 hours. The market awaits the FOMC statement April to leave rates unchanged and the dollar depreciated against the majors, even after the European Central Bank (ECB) said they will continue to ease as the EU finds its way back growth. The CAD was boosted by positive national data on the strength of exports and retail sales figures, although the greatest driver loonie was crude prices.
Oil reached its highest level in 2016 on Weak USD
US stocks are seen shrinking and, with a weak dollar without action as expected from the Fed April took oil prices in the year to date highs. The failure to reach an agreement to freeze the production of oil in Doha has affected short. First strike Kuwait oil workers reduced production until positive output cap stocks began flowing again.
There is considerable uncertainty surrounding the oil producers that the market has not seen a deal that is close to being hit on the oil production. World production is much higher than the demand and that the battle for market share has taken some competitors while prices fell. Now, with a clear rebound, it remains to see if its sustainable or will be a self-fulfilling prophecy. Higher prices to trigger production again and record levels of crude depreciate.
The effects of the April FOMC statement from the Fed will be felt across the foreign exchange market. Oil will continue to guide the DAC for better or worse that basic take a back seat to price action. There are no plans for monetary policy divergence between the Fed and the Bank of Canada (BoC) to change in 2016 that questions abound about the number of Fed rate can really do in a year's US presidential election. BoC Governor Stephen Poloz said yesterday he would have a significant economic impact for the central bank to consider further rate cuts. The Fed on the other hand kept their options open, the same rate which again hit the USD loses ground gained when world markets expected the Fed to drive way of the rising interest rate costs in the world full cut.
The Canadian economic calendar will close the week with the release of gross domestic product in February (GDP), Friday, April 29 at 08:30 EDT. According to forecasts for a reading lower than in January, although the surprise performance data on retail sales might improve the final number
CAD events to watch this week :.
Wednesday, April 27
10:30 USD stocks of crude oil
USD FOMC Statement 2:00 p.m.
2:00 p.m. USD Federal Funds Rate
Thursday, April 28
1:00 JPY BOJ outlook Report
Attempting JPY BOJ Press Conference
8:30 USD Advance GDP q / q
8:30 USD unemployment claims
Friday, April 29
8:30 CAD GDP m / m
Saturday, April 30
9:00 p.m. CNY manufacturing PMI
* 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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