Crude oil continues to fall this morning as the price of WTI is trading below the level of $35, the lowest level since the 2008/2009 financial crisis. Despite this, the Canadian dollar is relatively stable this morning as hedge funds reduced their long positions on the US dollar for a third consecutive week.
Following the first increase in the Fed fund rate last week, the probability of a second rate hike by the Fed, according to the futures market, in March is priced at 44.2%. For his part, the Governor of the Bank of Canada, Stephen Poloz, was chosen Person of the Year by the Canadian Press. This choice is far from unanimous as importers have been hit hard by the collapse of the Canadian dollar during the year.
Monday morning we will be watching the third revision of US GDP at 8:30.
- Range of the day: 1.3875 - 1.4025
Have a nice day!
Emmanuel Tessier-Fleury