The U.S. administration will withdraw from the Strategic Petroleum Reserve as part of a global effort from energy-consuming nations to calm 2021′s rapid rise in fuel prices. This included not only the U.S. but also India, China, Japan, Republic of Korea and the United Kingdom. The U.S. will endeavour to release 50 million barrels of oil over the near term.
Initially oil prices fell on the day but have since recovered and are now higher than yesterday’s close, traders had been aware of the upcoming announcement and had built it into the market, basically it had no impact.
The Canadian dollar is a bit weaker on this news, but it is more of a stronger USD to most currencies as investors are still of the belief that the Fed will have to hike rtaes sooner than later.
Expect a narrow range on the USDCAD with the CAD possibly trading back to the 1.2745 level earlier this morning.
Currently* Close Range
USDCAD 1.2712 1.2698 1.2694-1.2744
EURCAD 1.4320 1.4262 1.4266-1.4353
GBPCAD 1.7016 1.7010 1.6970-1.7047
*Indicative Rates Only