The Canadian Dollar ended the holiday week alongside the euro at the top of the FX performance table. The recent clear messages from bank of Canada Governor Poloz appeared finally to be gaining some traction with investors, whilst a jump in energy prices and a potentially very significant shift in the technical outlook all offered very good support to the currency. With continued supply disruptions globally, and a ferocious spell of cold weather over much North America, NYMEX crude on Friday hit $60.46; the highest since June 2015. For most of the region encompassing New England, northern Pennsylvania and New York, the National Weather Service issued wind chill advisories or warnings as temperatures were expected to be below 10 degrees fahrenheit in a wide area until early in the New Year. As well as the WTI contract traded on NYMEX, Brent crude oil futures - the international benchmark - were also up, rising 45 cents or 0.7% to $66.61 a barrel. Brent broke through $67 earlier this week for the first time since May 2015. Since the start of the year, Brent and WTI have risen by 17 and 12 percent, respectively, although the price rises from mid-2017 are much stronger, at nearly 50%.
We’ve been highlighting that the technical picture has definitely shifted in the CAD’s favour after the decisive close below USD/CAD1.2760 and it will be a currency to keep a close eye on in the first few days of 2018. On this last weekend of the year, we wish all our clients in Canada and the United States a happy, peaceful and prosperous New Year.