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Oil Prices Edge Higher | Loonie Hits Five Week Low
Published October 19, 2018
The Canadian dollar weakened to a five-week low against its US counterpart after data of a lackluster consumer price index was released. CPI dropped sharply by -0.4%, missing market expectations, as temporary factors that had lifted the cost of gasoline and air travel dissipated.
Oil prices rose on signs of surging demand in China, the world’s second-biggest oil consumer, although the market was heading for a second week of losses on rising US inventories and concern that trade wars were curbing economic activity. WTI crude prices have hit a high of $69.59.
Federal Reserve Governor Randal Quarles said on Thursday he expects less aggressive interest rate rises than most of his fellow Fed policymakers and predicts higher longer-term growth for the US economy.
The cost of insuring exposure to Italy’s banks jumped after the country’s government bond market sold off sharply as the European Union slammed Rome’s draft budget. Five-year credit default swaps in UniCredit rose to 204 basis points.