Oil hits another high
Oil yet again reached a new high of $68 a barrel after the US reported a fall in petrol stocks. The rise in oil prices gave the Canadian dollar a boost as Canada is estimated to have the world’s second largest recoverable oil reserves in the world.
Some analysts even predict parity between the CAD and the USD if the current trend in oil prices continue.
It appears that the market sentiment for the Euro is quite strong at the moment as the Euro crossed the 1.23 mark despite weaker than expected IFO data. The IFO survey came in at 94.6 in August instead of the projected 95.2. The figure was also below July’s value, which means the first decline in three months.
The elections scheduled for the 18th of September might also be offering strength for the Euro in the medium term as it is reported that the likely alliance between CDU and FDP in parliament would allow much needed reforms to boost the German economy.
Initial claims data in the US came in as expected yesterday at 315k and seemed to calm the market down a bit after the negative durable goods orders earlier this week. The help wanted index, which rose to 39 from 38 in June, supported the initial claims data and the dollar in later trade.
There is very little in the form of data today, except for the UK 2nd Quarter GDP estimates out at 9:30am. The release will offer a first look at the breakdown of expenditure and the market expects to see weak consumer spending but a positive net trade contribution.
Some analysts even predict parity between the CAD and the USD if the current trend in oil prices continue.
It appears that the market sentiment for the Euro is quite strong at the moment as the Euro crossed the 1.23 mark despite weaker than expected IFO data. The IFO survey came in at 94.6 in August instead of the projected 95.2. The figure was also below July’s value, which means the first decline in three months.
The elections scheduled for the 18th of September might also be offering strength for the Euro in the medium term as it is reported that the likely alliance between CDU and FDP in parliament would allow much needed reforms to boost the German economy.
Initial claims data in the US came in as expected yesterday at 315k and seemed to calm the market down a bit after the negative durable goods orders earlier this week. The help wanted index, which rose to 39 from 38 in June, supported the initial claims data and the dollar in later trade.
There is very little in the form of data today, except for the UK 2nd Quarter GDP estimates out at 9:30am. The release will offer a first look at the breakdown of expenditure and the market expects to see weak consumer spending but a positive net trade contribution.
posted by Wise Money @ 8:26 AM
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