Oil dependence is pushing the Canadian dollar after the black gold | Boris Fedotov

oil dependence
pushing the Canadian dollar after the "black gold"

recent events have once again proved that
Canadian dollar is in a severe and incurable dependence on oil. Of
all major "Canadian" rates showed the most negative dynamics in response to
drop in oil prices.

USDCAD has headed north, as soon as it became known to reduce the volume
refinery in China. Later, the pair continued upward trend in response
the publication of the forecast from the EIA, predicts
an increase in oil production by US slantsevikami to 6.15 million barrels a day
in September. Fuel to the fire poured a strong report on US retail sales,
after the publication of which USDCAD reached
maximum value for the last month, going up to the level of 1.2765.

However, another dose of positive news for the oil
forced to move away from a couple of highs. Today, the Canadian dollar was little
advantage over his American colleague on the background of positive data from the
American Petroleum Institute, which showed a decrease overcomes forecasts
inventories by 9.2 million barrels. This allowed the USDCAD pair down to the 1.2730 level.

In the evening, after the publication of EIA report will be clear,
whether the Canadian dollar can hold won advantage, or his fall
continue. If the report will show a decline in US oil inventories, "Canadian"
try to captivate the pair down to the 1.2670 level. Otherwise, USDCAD will return to monthly highs.

Exit
FOMC minutes are unlikely
to be able to significantly influence the situation. The Canadian dollar is only interested in
oil, and, judging by the fairly low-key reaction to the US dollar data
Retail sales, a violent reaction to the information of the FOMC
is not expected.

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