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Canadian GDP Exceeds Expectations; WTI Oil is Up

Published March 31, 2017
  • Month-on-month Canadian GDP growth demonstrated a better than expected reading, 0.6% versus an expected 0.3%; the Canadian dollar showed immediate strength against the US dollar
  • Canadian manufacturing was the largest contributor to this increase in GDP growth; the local manufacturing sector has shown an expansion in every month since June 2016, October being the only exception
  • US month-on-month personal spending and personal income was largely unchanged; the market will also look to the Chicago PMI data release at 9:45 AM EST for an indication of US manufacturing activity in March
  • WTI oil prices rose above $50 for the first time in 3 weeks on indications that global oil supply appears to be tightening (as US inventories showed a drawdown); oil is set to end Q1 with losses of 7%
  • Oil prices were further boosted this week following reports that Kuwait and other members of the OPEC supply cut were in support of extending the deal beyond the initial June 2017 deadline
  • Kuwaiti Oil Minister Essam Al-Marzouq also noted that OPEC member compliance with the supply cut reached 140% (due to Saudi Arabia cutting more than pledged) while non-OPEC members compliance stood at 50-60%