Markets did their best to make liars out of the analysts claiming a weaker correlation between the price of crude oil and the CAD. With the announcement of a major surge in Gasoline Inventories in the United States, crude oil prices turned in their worst performance of the past six weeks (-3.76%). Obviously, some will say that this was more a function of a rising greenback, however the impact on commodity-based currencies (CAD, AUD, NZD) was more substantial.
The loonie plummeted 1.25% yesterday and remains under pressure this morning. Crude oil prices have firmed up somewhat as producers once again hinted at a potential agreement to trim their output.
As for the Federal Reserve’s famous Beige Book, it still shows moderate growth across the United States. Interestingly, there appears to be some scarcity in potential workers, resulting in upward pressure on salaries. Could it be that President Trump will have to revise his immigration policy in the short term? Go Habs Go!
