EUR/USD 1.16349
0.034%
Gold 3989.99
-2.782%
Oil 61.446
0.212%
USD/JPY 153.065
0.158%
GBP/USD 1.33295
0.137%
GBP/JPY 204.032
0.295%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 27th, global seaborne crude oil volumes surged to a new record, indicating that oil supplies continue to increase despite rising prices following sanctions on some of Russias largest oil companies. According to data from Vortexa Ltd., approximately 1.4 billion barrels of crude oil are currently being loaded on tankers, the highest level since records began in 2016. Maritime crude oil shipments have climbed for the past 10 weeks, the longest such streak since data began being released. This is driven by continued production expansion by OPEC+ and countries outside the producer group, particularly in the Americas. Last week, the Trump administration imposed sanctions on Russian oil giants Lukoil PJSC and Rosneft PJSC, driving a strong rebound in crude oil prices from five-month lows. However, prices are still expected to fall 7% this month as concerns about oversupply intensify. The International Energy Agency predicts that as global supply continues to rise, the oil market will enter a record surplus next year.On October 27, Berkshire Hathaway (BRK.AN, BRK.BN) received a rare "sell" rating, as analysts remained cautious about its earnings outlook and continued concerns about Warren Buffetts impending departure and macro risks. New York investment bank KBW (Keefe, Bruyette & Woods) downgraded the conglomerates Class A shares from "market perform" to "underperform," citing "many factors moving in the wrong direction." This is the only sell rating among the six analysts covered by the firm. "In addition to our ongoing concerns about macro uncertainty and Berkshires historically unique succession risk, we believe the stock will underperform as earnings challenges emerge and/or persist," analyst Meyer Shields wrote in the report. Berkshire Class B shares fell about 1% on Monday. So far this year, the stock has risen just 7.8%, compared to a 16% gain for the S&P 500.Pemex: By the end of the third quarter, it had received 380.1 billion pesos in support from the government.Pemex: Crude oil and condensate production in the third quarter was 1.65 million barrels per day, a year-on-year decrease of 6.6%.Pemex: Crude oil processing volume in the third quarter was 1.01 million barrels per day, a year-on-year increase of 4.9%.

USD/CAD Trades at a Flat Level Following Volatile Trading and Rising US Treasury Yields

Drake Hampton

Apr 06, 2022 10:16

Insights

  • The dollar fell as additional penalties against Russia weighed on the Loonie.

  • Benchmark rates increased as the Federal Reserve pursued a more aggressive rate hike strategy.

  • Due to the new penalties, gold and silver prices remained rather stable.

  • As European countries ponder further measures, oil prices continue to rise.

 

Despite a volatile trading session, the dollar maintained its strength as higher oil prices bolstered the commodity-linked Loonie. The yield on ten-year government bonds increased to 2.56 percent, the highest level since May 2019. Benchmark rates increased several basis points following Fed Governor Brainard's statement that the Fed must pursue a more aggressive stance to contain inflation. Commodity-linked currencies such as the Loonie increased in value as a result of higher oil prices and good economic indicators. New sanctions against Russia continue to benefit silver and gold prices. On the potential of fresh Russian sanctions, oil prices continued to increase. Investors are awaiting the release of the minutes from the most recent FMOC meeting on Wednesday.

 

Today, the US released its February trade balance. Actual balance of -$89.2 billion was lower than predicted at -$88.5 billion. The reading stayed relatively stable compared to the previous month, indicating a record deficiency. Exports increased by 1.8%, while imports jumped by 1.3 percent. In the following months, the Russia-Ukraine war may limit demand for US exports.

Technical Evaluation

The USD/CAD exchange rate remained unchanged following a recovery from the downward pressure caused by increased oil prices, which supported the Loonie. However, losses should be contained as a result of the Fed's more aggressive rate hikes. The pair remains below the key level of 1.25 and may be driven lower as additional penalties against Russia increase. Resistance is located near the 10-day moving average, which is now at 1.25. Near today's lows near 1.24, support is seen. A break below support would reveal the daily low of 1.2387 from November 10th, signaling further downward pressure. The short-term momentum shifted to the upside when the fast stochastic crossed above the buy signal.

 

Although the MACD line generated a crossover sell signal, the medium-term momentum is negative but favorable. When the MACD line (the 12-day moving average minus the 26-day moving average) passes the MACD signal line, this scenario occurs (the 9-day moving average of the MACD line).

 

image.png 

Suggestion