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USD Rebounds from G20 Worries; Oil Down on US Rig Count

Published March 20, 2017
  • USD/CAD fell early this morning only to rise again to the mid-1.33 range
  • Market participants will look to a speech from Chicago Fed President Charles Evans later today and a speech from Fed Chair Janet Yellen on Thursday
  • Oil prices continue to endure lower levels as rising US shale production is feeding concerns about a global supply glut
  • The Baker Hughes rig count showed that the number of US rigs drilling for oil rose by 14 last week; this is the ninth weekly increase in a row for US drilling activity
  • The total number of active rigs now stands at 631, the highest level since September 2015
  • Doubt over the effectiveness of the OPEC supply cut is also weighing on oil…
  • Libya, which is another country outside of the OPEC deal, may also increase oil output when it regains control of two key oil ports
  • OPEC leaders and other participants in the cut will meet in Kuwait on the 26th to discuss compliance; hints of an extension of the deal beyond June 2017 could cause sharp movements in oil prices
  • During the G20 meeting last week in Germany, global financial leaders found common ground on foreign exchange but failed to agree on trade; a stable stance on FX was welcomed by the market but uncertainty over trade caused shakiness in the US dollar this morning
  • French politics will influence the euro again this week as the first televised French presidential debate is set to take place at 3:00 PM EST today; anti-EU candidate Marine Le Pen is essentially tied in polls with centrist Emmanuel Macron