Oil fell about 2% on Tuesday on concerns about excess global crude supply and limited progress toward resolving a U.S.-China trade dispute that has clouded the outlook for oil demand. Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month, but could commit to extend existing curbs to support Saudi Arabia, reported several sources. OPEC and its allies will consider whether to deepen cuts to crude supply when they next meet in December due to worries about weak demand growth in 2020, sources from the oil-producing club said.
The Canadian dollar is weaker on the back of lower oil prices and the weaker manufacturing sales. The number was better than anticipated however the overall market trend seems to be that traders are still drawn to USD. There seems to be a greater divide as to where the U.S. China trade talks are going. While some investors remain skeptical of a U.S.-China trade deal, the smart money has started to bet on a resolution to the jarring battle that has dragged on for nearly two years, according to Goldman Sachs.
Hedge funds increased their allocations to companies with big revenue exposure to China during the third quarter, according to Goldman’s latest research looking at 833 hedge funds with $2.1 trillion in equity positions.
Currently Close Range
USDCAD 1.3225 1.3206 1.3191-1.3242
EURCAD 1.4660 1.4622 1.4612-1.4677
GBPCAD 1.7107 1.7107 1.7069-1.7162