The Canadian Dollar had a very strong day on Thursday, equal top performer with the EUR. NYMEX crude which slipped a little to $59.55 on Wednesday, is this morning up at $60.25; the highest since June 2015. Brent crude futures - the international benchmark - are 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%.
As well as the supply side of the energy equation, we also have to look at demand. Our Canadian clients will need no reminder that Winter can be severe. However, an arctic blast has sent most of the US Northeast and Midwest into a deep freeze that has set record lows in several places. 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 are expected to be below 10 degrees fahrenheit in a wide area. For upstate New York, east of Lake Ontario, the NWS warned of “dangerously” cold wind chills of minus 5 F to minus 30 F through Friday, whilst Erie - a city of about 100,000 on the shores of Lake Erie in northwest Pennsylvania - is already buried under more than 65 inches from a record-breaking storm earlier this week. Wrap up warm this weekend…
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.
The Canadian Dollar opens in North America this morning at a 10-week low (CAD stronger) of USD1.2535 with GBP/CAD at 1.6930 and EUR/CAD at 1.5025.