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The Canadian dollar strengthened against the U.S. dollar and most G10 currencies after the Federal Reserve announced new standing repo facilities to backstop money markets. Canadian annual inflation slowed to 3.1% in June from a decade high in May.
U.S. crude settled 1% higher at $72.39 a barrel after a larger-than-expected inventory draw.
Fed backstops reduce global financial tail risk, supporting risk appetite and commodity demand, while the firmer loonie modestly weighs on Canadian-priced commodity export competitiveness.
theglobeandmail.comFergal SmithJul 28, 2021After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
