Loonie Surges on Positive Data; Oil Climbs on OPEC Cuts
Published December 1, 2017
The Canadian dollar surged over 1% against the greenback this morning after GDP and employment numbers beat expectations, with additional support coming from higher oil prices.
Canadian employment increased by 79.5K in November, trouncing the 10K forecast. This represents the largest increase since 2012, driven largely by manufacturing and wholesale/retail trade industries. Month over month GDP growth came in at 0.2% versus expectations of 0.1%.
Oil continued its ascent after OPEC agreed to extend production cuts to the end of 2018, with Russia also agreeing to be part of the pact. WTI crude is up 1.59% to $58.31 with Brent crude up 1.50% to $63.57 at the time of writing.
The US dollar tumbled at today’s session open, after the Senate vote on the Republican tax plan was delayed due to concerns about the bill’s impact on the federal deficit. Republicans are still optimistic that the bill could be approved this week, with preliminary voting to begin at 11:00am EST today.