0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.51% 🇦🇺AUD: 0.45% 🇨🇦CAD: 0.44% 🇳🇿NZD: 0.25% 🇬🇧GBP: 0.23% 🇯🇵JPY: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/X79P6EsMnj
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.74% France 40: 2.73% FTSE 100: 2.28% Wall Street: 0.91% US 500: 0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SvvEG07UEc
  • NZ PM says Auckland will move to level 3 restrictions for 3 days $NZD
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/dnwQT6AhKF
  • Heads Up:🇿🇦 Unemployment Rate (Q2) due at 09:30 GMT (15min) Previous: 30.1% https://www.dailyfx.com/economic-calendar#2020-08-11
  • 💶 ZEW Economic Sentiment Index (AUG) Actual: 64.0 Previous: 59.6 https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇩🇪 ZEW Current Conditions (AUG) Actual: -81.3 Expected: -68.8 Previous: -80.9 https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇩🇪 ZEW Economic Sentiment Index (AUG) Actual: 71.5 Expected: 58 Previous: 59.3 https://www.dailyfx.com/economic-calendar#2020-08-11
  • Heads Up:🇩🇪 ZEW Current Conditions (AUG) due at 09:00 GMT (15min) Expected: -68.8 Previous: -80.9 https://www.dailyfx.com/economic-calendar#2020-08-11
  • Heads Up:🇩🇪 ZEW Economic Sentiment Index (AUG) due at 09:00 GMT (15min) Expected: 58 Previous: 59.3 https://www.dailyfx.com/economic-calendar#2020-08-11
CAD Price Continues to Fall Despite Rising Crude Oil Prices

CAD Price Continues to Fall Despite Rising Crude Oil Prices

2019-03-07 11:00:00
Martin Essex, MSTA, Analyst
Share:

CAD price, news and analysis:

  • Crude oil prices are still advancing and that should have strengthened the Canadian Dollar as Canada is a major oil producer.
  • Instead, CAD is weakening on political concerns and a dovish central bank.

Rising crude oil prices

Crude oil prices are continuing to trend higher as supply cuts by OPEC and its allies, plus US sanctions on Venezuela, outweigh record US output and rising US inventories. US stockpiles rose much more than expected last week, with inventories up by 7.1 million barrels to 452.93 million barrels, according to a weekly report by the US Energy Information Administration Wednesday.

US Crude Oil Price Chart, Daily Timeframe (December 14, 2018 – March 7, 2019)

Latest US crude oil price chart.

Chart by IG (You can click on it for a larger image)

USDCAD price firms

Usually, that would boost the Canadian Dollar as Canada has the world’s third largest oil reserves after Venezuela and Saudi Arabia. However, the US Dollar is continuing to advance against it, as the chart below shows.

USDCAD Price Chart, Hourly Timeframe (March 1 – March 7, 2019)

Latest USDCAD price chart.

Chart by IG (You can click on it for a larger image)

For now, Canadian politics and a dovish Bank of Canada are outweighing the impact of higher oil prices. On the political front, Canadian Prime Minister Justin Trudeau is caught up in a scandal involving allegations made by Canadas former attorney general, Jody Wilson-Raybould, who says Trudeau and his inner circle intervened inappropriately in the criminal prosecution of a major engineering firm.

At the same time, the Bank of Canada said Wednesday that the economic outlook continues to warrant interest rates below their neutral range, estimated at around 2.5% to 3.5%. It left its benchmark rate at a much lower 1.75% and its tone was less hawkish than previously.

That change may have reflected news Friday that the Canadian economy expanded at an annualized rate of just 0.4% in the last quarter of 2018 as the country posted its weakest quarterly growth since the middle of 2016.

While the link between the oil price and the currency is unlikely to have broken long-term, for now economic and political concerns look to be more important for the USDCAD price.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.