Crude oil correction continues
For no particular reason, we’re waking up this morning to crude oil under $39 a barrel after four straight days of declining prices, racking up losses of close to 7%. Although normally such a scenario would be unfavourable for the loonie and other commodity-based currencies, it’s the greenback that appears to be falling against its peers in an odd twist.
Nevertheless, positive drivers for the USD are numerous, including various speeches by Fed members. Earlier, San Francisco Fed President John Williams said that he favoured staying on track with rate hikes, stating that he was confident the Fed’s inflation target would be reached. It will be interesting to see whether Fed President Janet Yellen will adopt a similar point of view during her speech to the Economic Club of New York at lunchtime.
Across the Atlantic, the most recent polling on Brexit, the possibility of the United Kingdom leaving the European Union, shows 41% in favour and 49% wanting to stay. No doubt a great deal more will be said about the subject before the final vote is held on June 23.
