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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Oil Sinks on US Stockpile Data; US Job Numbers Far Exceed Expectations

Published March 8, 2017
  • US ADP Non-Farm Employment data showed a very impressive increase of 298,000 new jobs in the last month versus an expected 184,000; USD/CAD has risen to a new high for 2017 as a US interest rate hike this month becomes more certain
  • Canadian Housing Starts and Building Permits also offered steady increases; however, this did little to help as the Canadian dollar remains under sustained pressure from a burgeoning US economy and lower oil prices
  • Oil is down nearly 1% this morning after an American Petroleum Institute report showed a substantial rise in crude stockpile inventories in the Unites States; inventories rose by more than 11.6 million barrels last week versus an expected 1.6 million barrels
  • The US government’s official reading is set to be released later this morning at 10:30 AM; if this official data replicates the API data it will be the ninth straight week of increases for oil inventories in the US
  • US crude supplies have continued to rise since January 1 despite the OPEC supply cut; oil prices will face additional pressure from a US interest rate hike next week, a strong dollar and rising US oil production
  • China surprised the market by showing its first trade deficit in three years as imports suddenly surged much more than expected; the world’s largest economy showed a trade deficit of $9.15 billion versus an expected $25.75 billion surplus