Spot oil prices traded within a volatile range yesterday, remaining in negative territory for the majority of the day before erasing losses and finishing the day higher, as crude oil storage data showed a drawdown in gasoline inventories. This volatility spilled over into the USDCAD once again, which was up as much as 0.5% before falling by 1.2% from its highs. Meanwhile, the Pound continued to weaken yesterday, and is slightly lower this morning trading barely above 1.39, as concerns over a possible Brexit intensify. Lastly, the FED’s St. Louis President James Bullard, a long-time hawk, expressed his concerns regarding further rate hikes given the markets uncertainty and declining inflation expectations. The UK will publish second estimate GDP readings today, forecasted to come in at 0.5% quarter-on-quarter. Shortly after, the Eurozone is set to release final inflation figures anticipated to show a year-on-year growth of 0.4%. Meanwhile, all eyes will be on the US’ release of manufacturing data in the form of durable goods orders, which are expected to have turned positive for the first time in the last three months. Lastly, unemployment claims out of the US are anticipated to have grown slightly to 271K versus last week’s reading of 262K. |
