Oil is up as attacks on two tankers in the Middle East just weeks after a previous incident in the region raised concerns over potential supply disruptions. Oil was up 4,5% but has since fallen back to up 2% on the day. The incident is stoking fears that diplomatic efforts won’t avert a military confrontation between the U.S. and Iran, which has imposed sanctions on the Islamic Republic. While the risk of conflict boosted prices, the gains were tempered by concerns over weak global demand. Meanwhile tensions in Hong Kong are high as yesterday’s demonstrations resulted in seventy-two people aged between 15 and 66 being injured in the violence, including two men who are in critical condition. The Chinese government wants to propose a bill that would allow extradition to China, the Hong Kong government has backed the bill saying there will be legally binding human rights safeguards.
The USDCAD is basically unchanged, markets are waiting to see if there is any response from U.S. and Saudi Arabia in regard to the oil tanker situation. The U.S. has gone on record that it doesn’t want to start a war, so we have to wait and see.
Currently Close Range
USDCAD 1.3327 1.3343 1.3300-1.3344
EURCAD 1.5025 1.5061 1.5010-1.5066
GBPCAD 1.6894 1.6931 1.6848-1.6935
US: Jobless Claims wk6/8 219K 222K