Reduced Cushing crude oil inventoriesU.S. crude oil inventories dropped by 3.6 million barrels, the first decline since September 18 (11 weeks ago). Crude oil rose by close to 3.8% in the morning, before nosing downward once again toward the previous day’s lows. This morning, prices are holding steady at around $37 a barrel. Not surprisingly, the loonie mirrored oil movements, albeit in a more muted fashion, with variations in the order of 0.5% upward, then downward.
This morning, the Bank of England announced that it would keep its key rate at its lowest level in history, 0.5%, citing the sharp decline in energy costs and moderate growth in salaries. In other words, given the current climate, rising inflation is not a concern for the BoE, which now faces the challenge of successfully bringing inflation back close to its target of 2% in a global context where central banks are more concerned about the risk of deflation. This morning, the GBP is down 0.6% against the loonie.
Today, we’ll be keeping an eye on U.S. Jobless Claims and Canadian New Housing Prices.
