12th September 2018 - The oil price raised the risk appetite and sent CAD higher

Walid Salah Eldin

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Feb 15, 2016
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The Oil rising could spur CAD gains across the broad sending USDCAD down to traded currently near 1.3070, as the Canadian economy depends mainly on exporting oil to US.


The gasoline prices reacted positively by a remarkable way to the threat of Hurricane Florence which can temper the oil producing from US east coast.

While Brent crude oil price is now hovering near the year high close to $80 per barrel as the US-made sanctions against the Iranian oil exports which will be activated in the beginning of November started to take the market attention.


The energy companies shares could be boosted by the oil prices rising sending Dow Jones up 0.44% gaining 113.99 points, after it has started yesterday session in the negative territory on worries about the Trade tension between US and China.


The risk appetite returning and the expectations of watching higher interest rate in US could lower the demand for the US Treasuries sending their yields up in the secondary money market.

UST 10yr yield reached 2.9792 at the end of the US session, after it had been standing close to 2.94% since the upbeating Aug US Labor report release which has sent this yield up from 2.88% last Friday on rising of the interest rate outlook in US.


The Asian equity indexes are looking ahead of positive opening, after their US counterparts closed up ignoring this time the worries about the trade tension which has been triggered this week by Trump’s signal that he’s ready to target a sum of goods equal to virtually all imports from China.

His signal came to raise the market attention toward the Trade War, after The deadline for public comment on proposed US tariff hikes on an additional $200 billion of Chinese imports ended last Thursday without new announced levies from Trump.


The investors' risk appetite has also shrugged off the negative impact of USD interest rate rising on the emerging economies and their currencies such as the Argentinean Peso and the Turkish lira.



Kind Regards

Global Market Strategist of FX-Recommends

Walid Salah El Din