FXStreet President Trumps decision to move away from the Paris climate agreement, is likely to lead to additional Oil production, said Peter rose, a prank, a market analyst at Swissquote.
This is for the Oil not good, since recent reports show that the OPEC Nations for production cuts do not apply – have begun to increase production. According to a Bloomberg report, the OPEC production increased by a total of 315.000 barrels per day 32,21 million.
In addition, the weakness in 1. Quarter in the United States suggest that the demand backdrop is not as positive as originally assumed. Since the Oil is already cheap it, it is difficult to further weakness. A sustained Oil price of 48 USD/Barrel (in the range of 45-55 USD), however, damage to certain economies. Canada and Mexico would worsen at these Oil prices, external deficits, which is why a prolonged period of weakness, the balances only. A further Erosion in the economic positions will harm their currencies will probably be even more. In addition, negative Carry for the CAD Trades with the US traders under pressure to liquidate quickly, if you get the Chance.
On the other hand, Russia and Norway power can generate surplus, and medium-term currency strength support. From the trade point of view, we suspect that the RUB is overbought and comments from the Central Bank showed their dissatisfaction with the strong currency.But Short positions in CAD (Long USD/CAD) appear to be fundamentally very attractive.The USD/CAD gave a key support in 1,3385 due to the bearish change in the Oil and a break above 1,3570 another bull would let the organic Momentum suspect.
** FXStreet News Editorial, FXStreet**