Tensions between Saudi Arabia and Iran have helped support crude prices, however, offsetting that is the deterioration of the U.S.-China trade situation is a big negative for crude and a big negative for the Asian economy. The recent attacks on oil tankers and pumping stations have highlighted how disruptive a major war in the Middle East would be to crude flows. Still, investors remain concerned that the escalation of the U.S.-China trade war will only hurt global oil demand. Meanwhile, traders will be watching this weekend’s meeting of OPEC producers and allies in Jeddah for signals as to whether the group will aim to fill supply gaps following U.S.-imposed sanctions on Iran.
Meanwhile, China’s state media signaled a lack of interest in resuming trade talks with the U.S. under the current threat of higher tariffs, without new moves that show the U.S. is sincere, it is meaningless for its officials to come to China and have trade talks, according to a commentary by the blog Taoran Notes.
The USDCAD is unchanged still staying within the band. 30 day simple moving average 1.3415.
Currently Close Range
USDCAD 1.3460 1.3460 1.3452-1.3513
EURCAD 1.5025 1.5042 1.5011-1.5100
GBPCAD 1.7140 1.7226 1.7132-1.7245
US: Consumer Sentiment May 97.2 102.4