Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

Lower Energy, Lower Canadian Dollar

By Richard Lee
23 February 2006 20:06 GMT
Now 12 percent above the five year average, crude oil inventories are well above levels seen this time last year.  Subsequently, gasoline stock and distillates were additionally higher over the period.  The positive report quelled earlier concerns of supply disruptions as tensions rise in the country of Nigeria potentially cutting off 30 percent of overall production to the world and forced the front month contract lower by 71 cents to $60.35. However, the optimistic report lends to further loonie spot downside as lower valuations and rising supply of crude oil thins out growth.  Currently trading at 1.1526, the underlying spot is significantly higher than the 1.1484 close yesterday in New York.

With crude oil contracts finishing lower and bullion taking a hit towards $554, benchmark issues led declines in the headline index while the junior market ticked slightly higher.  The S&P TSX composite index slipped 13.63 points to 11,786.57 while the Venture Exchange edged higher by 5.42 points to 2,532.68.  Stock in the region’s largest gold producer declined on the overall pessimistic sentiment.  Canadian based Barrick Gold Corp. reported quarterly profit that rose $175 million compared to a $156 million rise in the annualized comparison.  Nonetheless, the overall sector declined more than two percent  as the April bullion contract dipped almost $2 on the session.

Canadian bond markets mimicked U.S. markets as traders continued momentum off of the recent consumer price index.  Anticipating further rate hike considerations by policy officials, traders bid the note lower by 35 cents to 102.78 as the yield rose 4 basis points to 4.13 percent.

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

23 February 2006 20:06 GMT