Oil Prices Slide on Slowing US Demand
Oil prices continued their decline Friday as flagging US demand and the stronger dollar made the crude lose 8 percent this week.
Light sweet crude for October delivery is down USD 1.39 at USD 106.50.
As oil prices have been falling, the dollar has been gaining steadily against the euro and as crude is traded in dollars around the world, the prices are further lowered.
OPEC meets on September 9, with some expectations the cartel may opt to cut oil prices to prevent a build-up of surplus stocks.
Euro falls amid 7/8 week slide (currently at 1.4250 USD, down from around 1.60 just over a month ago)
Volatility has ripped through the financial markets with the Dow Jones Industrial Average plunging 344 points and the US dollar surging to a year to date high against the Euro.With the exception of the dollar’s performance against the Japanese Yen, the greenback’s strength has been universal.In yesterday’s Daily Currency Focus, we said that the dollar could see a near term reversal.That happened briefly with the EUR/USD hitting an intraday high of 1.4545, but once the US stock market started falling, the dollar resumed its rise.Given the drop in equities and bond yields, the only explanation for the divergent move in the currency market is risk aversion.The dollar has once again received a flight to safety boost.The sharp sell-off in carry trades including USD/JPY provides further evidence that risk aversion is behind today’s move.
Resistances
1,4320 - 1,4460
Supports
1,4220 - 1,4130
Canadian dollar rallies on weak economic numbers in the US, staying away from recent lows
TORONTO (Dow Jones)--The Canadian dollar is higher in choppy trading early Friday, shaking off an early indecisive tone after another weak U.S. employment report for August began to weigh on the U.S. dollar globally.
The U.S. dollar was trading at C$1.0629 at 9:46 a.m. EDT (1346 GMT), from C$1.0662 at 8:00 a.m. EDT (1200 GMT) and C$1.0689 late Thursday.
The Canadian dollar received a momentary boost early in Friday's session from news that Canada's labor market rebounded from two successive months of net declines with the creation of just over 15,000 new jobs in August.
Oil prices continued their decline Friday as flagging US demand and the stronger dollar made the crude lose 8 percent this week.
Light sweet crude for October delivery is down USD 1.39 at USD 106.50.
As oil prices have been falling, the dollar has been gaining steadily against the euro and as crude is traded in dollars around the world, the prices are further lowered.
OPEC meets on September 9, with some expectations the cartel may opt to cut oil prices to prevent a build-up of surplus stocks.
Euro falls amid 7/8 week slide (currently at 1.4250 USD, down from around 1.60 just over a month ago)
Volatility has ripped through the financial markets with the Dow Jones Industrial Average plunging 344 points and the US dollar surging to a year to date high against the Euro.With the exception of the dollar’s performance against the Japanese Yen, the greenback’s strength has been universal.In yesterday’s Daily Currency Focus, we said that the dollar could see a near term reversal.That happened briefly with the EUR/USD hitting an intraday high of 1.4545, but once the US stock market started falling, the dollar resumed its rise.Given the drop in equities and bond yields, the only explanation for the divergent move in the currency market is risk aversion.The dollar has once again received a flight to safety boost.The sharp sell-off in carry trades including USD/JPY provides further evidence that risk aversion is behind today’s move.
Resistances
1,4320 - 1,4460
Supports
1,4220 - 1,4130
Canadian dollar rallies on weak economic numbers in the US, staying away from recent lows
TORONTO (Dow Jones)--The Canadian dollar is higher in choppy trading early Friday, shaking off an early indecisive tone after another weak U.S. employment report for August began to weigh on the U.S. dollar globally.
The U.S. dollar was trading at C$1.0629 at 9:46 a.m. EDT (1346 GMT), from C$1.0662 at 8:00 a.m. EDT (1200 GMT) and C$1.0689 late Thursday.
The Canadian dollar received a momentary boost early in Friday's session from news that Canada's labor market rebounded from two successive months of net declines with the creation of just over 15,000 new jobs in August.
