September 09, 2021
GBP/USD: The Great Britain pound fell against the US dollar on Wednesday as the greenback keeps holding a strong position in the market. UK policymakers spoke before the House of Commons in the Monetary Policy Report Hearings, and they disproved speculation on soon to come tapering in the UK. The Bank of England Governor noted that the minimum conditions for a rate rise have been met but are not enough for one at the time being. The UK won’t publish macroeconomic data on Thursday, while the US will release Initial Jobless Claims for the week ended. The local support level can be seen at 1.3750. A breakout below could take the pair towards 1.3700.
USD/CAD: The US dollar rose against the Canadian dollar yesterday due to worries that the global economic perspective is deteriorating. The Bank of Canada decided to leave rates unchanged at 0.25%, and it will continue buying bonds at a rate of $2 billion a week as part of its quantitative easing program. Political uncertainty was one of the factors contributing to the Canadian dollar’s decrease lately, and this may well limit any ability of the loonie to stage a solid recovery if other factors improve. Canada is the world’s fourth-largest exporter of oil, which rises on low US output, failures in Libyan ports. On the other hand, global demand for crude oils is declining due to recent restrictions over the Covid-19 Delta variant and a lack of buyers. The local resistance level can be seen at 1.2710. A breakout to the upside can trigger growth to 1.2770.
WTI: The oil prices rose on Wednesday due to a slow restart to production in the Gulf of Mexico after Hurricane Ida hit the region. More than three-quarters of the offshore oil and natural gas output remained shut on Wednesday. Refineries away from the coast have been regaining power and beginning to restart. For example, Exxon Mobil plans to complete restarting its 520 thousand barrels-per-day Baton Rouge refinery this week. Today, we expect reports from the US Energy Information Administration on Crude oil storage and Natural gas stocks change. These figures can help oil prices find direction at least until the end of the current week.