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Oil Hits Highest Price Since May 2015
Published January 9, 2018
BoC rate hike expectations for January are now above 90% and all six major Canadian banks are calling for the 25 basis point rate hike next week. The loonie has opened steady versus the greenback today and traders have become bullish on the loonie ahead of next week’s BoC meeting.
The euro fell for a third straight session despite stronger than expected German Industrial Production data and falling euro zone unemployment.
Brent Crude, the international benchmark, reached its highest price ($68.29) since May 2015 today. WTI also reached its highest price since May 2015 ($62.26). These higher prices are supported by OPEC-led production cuts. OPEC and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories.
Canadian Housing Starts data missed expectations this morning coming out at 217K with a forecast of 240K. Investors will be looking ahead to JOLTS Job Openings data out of the US this morning.