DISAPPOINTMENT AT THE OPEC SUMMIT
Markets were unquestionably disappointed after the meeting of oil-producing nations held in Vienna this week, which resulted in an announcement that the production cuts currently in effect would be carried over for nine months.
After the announcement was made at 11 a.m. (Eastern Time), crude oil prices (WTI) began to nosedive, ending the day down more than 4.7% and by extension ending a streak of price gains. In short, markets appeared to have unrealistic expectations for this meeting, with many observers hoping for an extension of the current cuts for more than a year and/or a new round of cuts, even though participants had never given any official indication that such possibilities existed.
Slumping energy prices brought the Canadian dollar down with them, wiping out almost all of the gains achieved Wednesday after the Bank of Canada’s rate decision.
Today, we’ll be keeping an eye on U.S. Durable Goods Orders for April at 8:30 this morning. All is quiet on the Canadian front.
Range of the day: 1.3405 – 1.3550
