The USD / CAD has been caught in a range between 1.390 and 1.3950 with the loonie fight to stay -Dessous price of 1.40 level. The price of oil suddenly depreciated at 14:30 which is when a shocking comment UAE Minister of Energy Mohammed bin Suhail Al Mazrouei said that the Organization of Petroleum Exporting Countries (OPEC) is ready to cooperate on crude production levels. The market reacted positively to rumors of Russia and OPEC cooperation much, only to be disappointed when no hired hand. The commentary stimulate a return of the Canadian dollar and the price of crude oil West Texas and Brent.
House prices in Canada rose 0.1 percent from month to month and 1.6 percent a year ago. This marks a slower start than expected home sales appears to have stabilized. The CHPI does not take into account sales of condos and apartments.
Canadian Prime Minister Justin Trudeau was quoted as saying that the budget will not be balanced by the end of his term, if current macroeconomic conditions continue to deteriorate. the budget next month, the first in this new Liberal government, is expected to include the fiscal stimulus. What is the subject of speculation that the Bank of Canada (BoC) also expects the real budget to analyze changes in monetary policy it needs to implement if the fiscal stimulus fails to revive the economy. PM Trudeau highlighted the negative impact that oil prices have on the Canadian economy.
The OPEC comments created a lot of volatility in the energy markets. The production is at record levels as global demand slows. The comments of the Minister of Energy UAE came a week after the market was looking for signs of an agreement between Russia and OPEC. Standing in the way of this possible conversation in which the two largest OPEC members Saudi Arabia and Iran have clearly expressed their intentions pumping at current levels.
WTI managed to rise above $ 27 after the comments after being directed to the multi-year low. Markets were concerned given the pessimistic data so they seized the opportunity of an oil production agreement with both hands, the rise was limited and it is waiting for a denial of Saudi Arabia which would make theoretical agreement. Given the price recovery that answer might not be so fast.
There are no Canadian data to be released at the end of the week. The USD will release retail sales excluding auto and data (core). The US retail sales data disappointed in the past and could add additional downward pressure on the USD. If a combination of a weak dollar and the loonie strong oil prices could end the week on a high. The situation surrounding the comments from OPEC is too fragile to consider it as an accomplished fact, and must be ratified by some of the most influential members to consider a reality
CAD events to watch this week :.
Friday, February 12
2:00 EUR German Prelim GDP q / q
8:30 USD Core Retail Sales m / m
8:30 USD sales retail m / m
10:00 am USD prelim UoM consumer sentiment
* All times EST
for a full list of events planned in the foreign exchange market check the economic calendar MarketPulse
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