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Canadian Dollar Strengthens with Oil; Markets Cautious Ahead of US-China Summit

Published April 5, 2017
  • Oil prices hit a one month high near this morning on an unexpected fall of US inventories; yesterday's data from the American Petroleum Institute showed a decline of 1.8 million barrels in US oil stockpiles
  • Investors will wait for US government data inventory data at 10:30 AM EST to confirm this decline in US inventories; an outage at the largest UK North Sea oilfield is also helping boost oil prices
  • The Canadian dollar is largely benefiting from this recent bullishness in the oil market; this momentum is helping the loonie move away from three-week lows brought on by yesterday’s unexpected trade deficit
  • This drop in exports will encourage the Bank of Canada to avoid putting too much weight on recent strong showings in Canadian data when they make their interest rate decision next week
  • Global markets remain cautious ahead of the summit meeting between US President Donald Trump and Chinese President Xi Jinping; markets are under pressure after North Korea test-fired a ballistic missile into the sea off its coast
  • ADP US Non-Farm Employment Change showed a much larger than expected reading at 263,000 versus an expected 185,000; FOMC meeting minutes are set to be released at 2:00 PM EST today