The prices of oil remain under pressure. WTI Crude Oil is now trading under the round level of $45, in a fall of nearly 3% and extending downtrend that was seen in recent days. August was a very volatile month for the black gold: it roughly ranged between $39 to $49.
The Canadian dollar is losing some ground, but things could have been worse. USD/CAD is trading higher, at 1.3130, but this rise of around 30 pips on the day is telling: the C$ is looking good.
One of the reasons for this resilience is the GDP report released in Canada earlier. The northern nation is unique in releasing its GDP data on a monthly basis. This time, we had the figure for June, concluding the second quarter. While the data was mixed, the last piece of data may have the final word: output advanced by 0.6% in June, significantly better than 0.4% expected and serving as a rebound from the fall of 0.6% in May.
The Canadian economy still has issues, but a positive month and expectations for a better second half look positive for the loonie. Also in the US, many expect the second half to be better than the first one. Today’s key data piece from the US was the ADP private sector report, which came in line with expectations: 177K jobs gained in August.
Here is a chart showing the gradual rise of USD/CAD. There’s no panic.
And here is WTI Crude Oil. It’s been quite a month:
Share
