OPEC Agrees, CAD Rises

According to the most recent reports, the members of the cartel have reached an agreement to cut their production as a group by some 700,000 barrels a day. With the exception of Iran, Libya and Nigeria, OPEC’s member nations will now apparently contribute between 32.5 million and 33 million barrels per day. The changes should be implemented during the OPEC meeting in Vienna in late November, at which members will establish the official production cuts for each country. Financial markets nevertheless saw a strong reaction to the news, with WTI skyrocketing 5% late in the day yesterday. The Canadian dollar was obviously one of the currencies most favoured by the news, gaining more than 150 points against the U.S. dollar.

This morning, we’ll be closely following U.S. Q2 2016 GDP data. Markets expect growth of 1.3% compared to the previous quarter. A surprise reading above that level would support comments by several Fed members yesterday that rate hikes are to be expected. Have a great day! Xavier Villemaire

  • Range of the day: 1.3030 – 1.3150
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