Cohesion between the main oil-producing countries is proving a challenge! Yesterday, Iran called the proposal to freeze oil output "ridiculous" while Saudi Oil Minister Ali al-Naimi stated that scaling back production was still out of the question. Not surprisingly, these comments weighed down the Canadian dollar, which is currently trading just above its 100-day moving average, a highly important technical support level.
Today, we’ll be keeping an eye on New Home Sales in the United States, as well as Crude Oil Inventories at 10:30 a.m. Speeches by three influential Fed members will also be carefully examined. In their recent comments, Fed members have been suggesting that the recent market volatility has had little impact on the U.S. economy and that several rate increases are still to be expected in 2016. Investors do not appear to share this view, as the futures market is pricing the likelihood of even one rate hike over the remainder of the year at less than 45%. Crude oil, stocks and the loonie are all down today. Have a great day. Emmanuel Tessier-Fleury
- Range of the day: 1.3790 – 1.3925