FX Daily Update
The National Bank of Canada | Jul 26, 2016 09:15AM ET
Crude oil prices down
U.S. West Texas Intermediate (WTI) benchmark crude oil is now trading at a 3-month low, with markets struggling to absorb some 520 million barrels of inventory in the United States. We learned last week that gasoline inventories are up 600,000 barrels at a time when we should be in the thick of the summer “driving season.” Moreover, the increased rig count south of the border points to U.S. output remaining at current levels of 8.5 million barrels a day despite weak prices. In short, crude oil could continue to exert upward pressure on the USD/CAD pair.
News this morning is mainly from south of the 49th parallel. At 9:45, we’ll be keeping an eye on Purchasing Managers Index figures, followed at 10 by the Consumer Confidence Index and New Home Sales. In general, markets anticipate readings that are at least at the same level as they were last month. If economists made the right call, it could be another favourable session for the greenback.
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