After falling for the past two days, the price of WTI crude oil has bounced back off its lows to trade flat to slightly firmer at the time of this writing on Thursday morning. However, WTI still remains in the red three and half days into the week. As a reminder, oil prices rallied last week and made back a significant chunk of their losses from the week before, but not enough to turn positive on the month. At $61.30 per barrel, WTI thus remains more than $5 or 8% below the high of $66.62 hit on Jan. 25.
As mentioned in my earlier post, trading is likely to wind down ahead of Christmas, but there are a number of currencies which may experience increased levels of volatility from time to time this week.
A draft executive order to withdraw the United States from the North American Free Trade Agreement is under consideration, a senior Trump administration official said on Wednesday, confirming an earlier report from Politico.
The United States will impose preliminary anti-subsidy duties averaging 20% on imports of Canadian softwood lumber, Commerce Secretary Wilbur Ross said on Monday, escalating a long-running trade dispute between the two neighbors.
The Trump administration is seeking mainly limited changes to the North American Free Trade Agreement with Mexico and Canada, the Wall Street Journal reported on Thursday, citing an administrative draft proposal circulated in Congress by the Office of the U.S. Trade Representative.
The sharp drop in the price of oil has weighed heavily on the oil-linked Canadian dollar today. The USD/CAD currency pair has surged above 1.3200 handle and was heading toward 1.3280 resistance at the time of this writing. The USD/CAD’s rally has come despite an otherwise down day for the U.S. dollar, which has been hurt by soft data and anxiety ahead of President Donald Trump’s speech tonight.
World Trade Organization chief Roberto Azevedo said on Wednesday he had not yet discussed trade issues with the new U.S. administration but was confident the WTO could cope with any new U.S. trade policy.
Canadian Prime Minister Justin Trudeau praised the European Union on Thursday as an unprecedented model for peaceful cooperation, in a speech to EU lawmakers that contrasted sharply with the critical stance of U.S. President Donald Trump.