There are reports that OPEC has a reached an ambitious deal. The expectations and hope for an agreement sent oil prices higher, with WTI topping $49. However, the report about an accord has resulted in a “sell the fact” reaction.
In any case, for the Canadian dollar, this is not always so good: the responses to oil are more limited.
But Canada did get good news from its own domestic economy: growth in September 2016 came out at 0.3%, better than 0.1% expected and 0.2% seen previously. Annualized growth for Q3 stands at 3.5%, also better than anticipated. Also, Q2, which saw a contraction, was revised up from -1.6% to 1.3%.
The economy is doing well, even if a y/y growth rate of 1.9% is not exciting. Given the weakness in oil prices in the past two years, things could have been worse.
USD/CAD is trading at lower ground, under the 1.34 level, but seems to hesitate. After hitting a low of 1.3356, the pair is back above the 1.3380 level that remains relevant support.
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