img CDN
img AUS
img NZ
img US
Call us now: 1.844.363.7297
imgOnline Dealing Login

USD Regains Strength, Oil Down on US Rigs

Published January 9, 2017
  • The US dollar remains strong off of increased wage growth data released last week; the .4% increase in hourly earnings is suggesting there is renewed strength in the US labour market and more reason for interest rate hikes in the months ahead
  • Canadian job and trade numbers were strong, however, this will likely not be enough to change the Bank of Canada’s dovish stance; this marks a sharp divide between US and Canadian monetary policy
  • Oil is down after news of increased drilling efforts by US shale producers counterbalanced the signs that OPEC members are in compliance with planned outputs; number of rigs rose again last week and is now at its highest level in more than a year
  • Analysts are expecting the US rig count to rise to 850-875 (from a current level of 529) by the end of 2017; spending on exploration and production to increase 27 percent in North America
  • This week will offer more data US Crude Oil Inventories, US Unemployment Numbers, inflation data and a speech from Fed Chair, Janet Yellen
  • GBP sank to a 10-week low after UK Prime Minister Theresa May indicated that the UK may be prepared for a “hard Brexit”; in an interview, May implied that the UK could exit from the single market of the EU

Chart (1) US Oil Rig Count