The Canadian dollar is under pressure to open today’s session. The USD / CAD climbed steadily after hitting $ 1,4002 at the start of Asia, reaching $ 1.4050 at the opening of Toronto. Prices accelerated to $ 1.4075 when West Texas Intermediate (WTI) oil prices fell from US $ 27.40 / b to $ 24.99 / b. The move was precipitated by a headline stating that Russian President Vladimir Putin had no plans to speak to President Trump or Saudi leaders.
If true, it crushes hopes that the Organization of the Petroleum Exporting Countries and Russia will accept a new production reduction strategy today.
WTI fully recovered from yesterday’s sale when the US Energy Information Administration said that stocks of American crude oil increased by 15.2 million barrels in the week ending April 3. The result was not a surprise due to the number of Americans who self-isolate and do not drive.
Traders are scrambling to buy greenbacks before the long Easter weekend, in a “rather cautious than sorry” move. The death toll in the United States from the COVID-19 epidemic rose to 14,768 between February 29 and April 8. There are more than 430,000 confirmed cases, suggesting that optimism about the epidemic reaching a plateau in the United States was out of place. Elsewhere, France and the United Kingdom plan to extend their mandatory blockages. Canada has more than 19,000 confirmed cases and the death toll has reached 435.
The minutes of the March 2 and March 15 meetings of the United States Federal Open Market Committee (FOMC) were released to the public with great fanfare yesterday.
The Fed seemed surprised at the magnitude of the economic impact of the pandemic, which is why their actions appeared so decisive. Speech by Fed President Jerome Powell will give the markets a fresh look at the outlook for the Fed today.
EUR / USD moves sideways, but with a slightly negative bias. EU finance ministers have yet to reach agreement on fiscal stimulus packages to support the eurozone economy. EUR / USD drifts in the middle of the range of $ 1.0842 to $ 1.0889 overnight.
Data on unemployment claims in the United States for the week ending April 3 are expected this morning, and forecasts forecast job losses in excess of 5.2 million. The news is not expected to have much impact on the foreign exchange markets, as the volume of layoff announcements suggests that the results are integrated.
Canada’s employment report for March should show an increase in the unemployment rate to 7.2% from 5.6% in February, while job losses exceed 350,000. The news is outdated and should not have a great effect on trading in Canadian dollars.
Have a great holiday weekend safely. Daily life will resume on April 14.
Rahim Madhavji is the President of KnightsbridgeFX.com, a Canadian money changer that offers better rates than banks to Canadians