Daily Afternoon Report 16.01.2017
The Canadian dollar slid against its U.S. counterpart on Monday as oil prices edged lower and trade remained thin, with U.S. financial markets shut for Martin Luther King Day.
USD/CAD was last up 0.32% at 1.3156, off the three-month low of 1.3028 set on Thursday.
Prices of oil, one of Canada’s major exports, were lower amid doubts over whether major producers will stick to planned output cuts aimed at reducing a global supply glut and on expectations that U.S. producers could ramp up production again this year.
Meanwhile, investors remained cautious ahead of U.S. President-elect Donald Trump’s inauguration on Friday amid a lack of clarity on his plans for fiscal stimulus, deregulation and tax cuts.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, climbed 0.46% to 101.61.
Investors were also looking ahead to the outcome of the Bank of Canada’s upcoming policy meeting on Wednesday, with market watchers expecting no change.
Recent economic reports have indicated that the Canadian economy remains resilient.
A report earlier this month showed that Canadian jobs growth surged in December. The country also posted its first trade surplus in more than two years in November, while a Bank of Canada survey last week indicated that business conditions are improving.