CAD the Strongest, As Canada Manufacturing and Oil Price Jump
Today the Oil price has made a strong bullish reversal, jumping $4 higher and reclaiming the $70 level, which is helping the CAD as well.
Today the Oil price has made a strong bullish reversal, jumping $4 higher and reclaiming the $70 level, which is helping the CAD as well, sending USD/CAD 50 pips lower. The USD has benefited from a negative reversal in risk sentiment as the conflict in the Middle East escalates, increasing around 50 pips against most currencies, however, the CAD is 50 pips higher against the US, which means the the CAD is around 1 cent stronger today.
US WTI Crude Oil Chart H4 – Reclaiming the $70 Level
Crude Oil has been declining as the global economy continues to show weakness. We saw further evidence from the Caixin manufacturing and services that the Chinese economy is still weakening, so the demand for Crude Oil has also weakened. WTI crude fell to $66.40s earlier in the European session today, but we saw a strong bullish move, which sent the price of WTI light crude $4 higher, reclaiming the $70 level again.
Canada September S&P Global Manufacturing PMI
- Canada September S&P Global Manufacturing PMI: 50.4 vs 49.5 (previous month)
- First time above 50 since April 2023, signaling slight expansion
- New Orders: Showed a small increase, but export orders continued to decline
- Input Cost Inflation: Rose to a 17-month high
- Output: Nearly stabilized
- Employment: Marginal increase
- Business Outlook: Firms are more optimistic, hoping for post-US election stability and lower interest rates
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
“The latest PMI figures revealed positive signs for the manufacturing sector, with improvements in new orders, employment, and business confidence since August. Respondents pointed to a slight increase in domestic demand as a key factor supporting growth, offsetting a continued decline in international sales.
Global demand remains weak, partly due to ongoing geopolitical uncertainties, which are still impacting production and purchasing activities. Companies are viewing the upcoming US elections as a potential source of stability, while also anticipating that lower interest rates could help spur growth in the next year.”
WTI Crude Oil Live Chart
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