Last week’s selloff on nearly everything due to the Federal Reserve’s rate comments seems to have been a bit overdone. It took the weekend for analysts and traders to realize that the FED’s comments are for rate hikes that are at least a year away. A lot can happen between now and then, however, inflation is still in the forefront and businesses are now complaining that they have severe staffing issues and cannot return to normal business levels.
Commodity prices jumped this morning with oil prices leading the way. Bank of America came out with a forecast that oil could hit $100 USD a barrel, as global consumption outstrips supply levels in 2022, the last time oil was at this level was 2014. In 2014, the USDCAD was trading between 1.1000 to 1.1700, this does not bode well for Canada’s manufacturing exports and agricultural products which will be priced out of their respective markets.
The Canadian dollar is stronger on the price moves this morning and will likely trade on the stronger side.