Lackluster Canadian Economic Data Moves USD/CAD Higher While Oil Prices Move Lower
Published April 20, 2018
Canadian inflation numbers came in slightly less than expected with a month-on-month growth reading of 0.3 percent versus expectations of 0.4 percent. Seven of eight major components in Canada’s inflation index were higher, with the clothing and footwear index being the only decline.
Growth in month-on-month Core Canadian Retail Sales also missed the mark with a 0 percent reading versus expectations of 0.4 percent. USD/CAD has moved to the low 1.2700’s as the market views this data release as a slight setback for the Bank of Canada’s interest rate hike projections for 2018.
Oil prices are mixed this morning despite news of record high compliance from OPEC and non-OPEC members in their agreement to curb oil production; compliance came in extremely strong at 149 percent as the group claimed the global supply cut had been “virtually eliminated”.
US President Donald Trump directly criticized OPEC over Twitter this morning, contending that the group is pushing oil prices to artificially high numbers; the President was short on detail but noted his administration’s strong position against OPEC’s measures.
Russian Energy Minister Alexander Novak commented that Russia may start discussing an easing of production quota levels later this year. Baker Hughes will release the number of newly US active oil rigs later today which will reveal if US oil companies are increasing production due to increasing WTI prices.
San Francisco Federal President John Williams (the future Fed president for the New York Federal Reserve Bank) is set to speak at 11:15 AM EST.
San Francisco Federal President John Williams (the future Fed President for the New York Federal Reserve Bank) is set to speak at 11:15 AM EST