FX Daily Update
The National Bank of Canada | Aug 25, 2015 08:45AM ET
International markets suffered a ferocious selloff Monday morning. The S&P 500 briefly fell 5.3% yesterday before rallying to end the day down 3.9%. China was largely blamed for the market meltdown. Xinhua, the country’s official news agency, even referred to the turmoil as “Black Monday.” In order to address the situation and ease lending criteria, Beijing cut its key rate this morning by 25 bps.
The uncertainty surrounding the global economy also continues to undermine crude oil prices. According to an analysis by our Chief Economist and Strategist, based on demand, the price of Brent crude oil could fall to $35 a barrel should the economic deterioration continue.
The worst of the storm is behind us with stock indexes up this morning. However, rest assured, the loonie will remain volatile in the days and weeks to come and we could revisit a USD/CAD level of 1.33, last seen in 2004.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.