Canadian Dollar Weakens Along With Oil

• The US dollar remains under pressure this morning; investors perceive the Trump administration’s struggles to dismantle Obamacare as a sign that the new president will face similar resistance when delivering tax cuts and infrastructure spending bills in Congress
• The Canadian dollar, however, continues to weaken against the greenback as yesterday’s early gains were reversed; the loonie moved in tandem with oil prices, initially strengthening but matching the commodity’s losses throughout the day
• Data from the American Petroleum Institute showed that US crude stockpiles rose by 4.5 million barrels last week; oil prices dropped again to the lowest level since the end of November
• Market participants now look to the official weekly oil supplies report from the US Energy Information Administration at 10:30 AM; Brent Crude prices will test the psychologically important $50 support level if today’s government data release matches yesterday’s increase in oil stockpiles
• WTI oil prices already breached the $50 level in early March and have yet to move back up; national oil ministers in the OPEC deal are likely to notice that the market has lost patience with the supply cut’s inability to bring on significant and visible oil stockpile drawdowns
• Canadian Prime Minister Justin Trudeau and Finance Chief Bill Morneau will release their second federal budget today; analysts are projecting that the budget will show a deficit of $30 billion
• US housing data for February is set to be released at 10:00 AM today; investors will be able to judge whether the recent increase in US consumer spending and inflation are also contributing to higher real estate prices and an increase in house sales