Canadian and Australian Dollars React to Oil Shifts

15 May 2017 11:05:19 AM

By: DailyForex.com

The Canadian Dollar hit two-week highs on Monday and the Australian dollar saw 10-day highs after a bounce in oil prices lead to a rise in commodity-linked currencies.  The Canadian dollar was up 0.6 percent to $1.3626 against the greenback as of 10:49 a.m. GMT on Mondy.  The Australian dollar gained 0.73 percent to trade at $0.7439.

The U.S. dollar started the weak defensively, after U.S. data released on Friday showed slower than expected April retail sales from March and concern about the retail sector prevailed.  

Positive Signs in Germany and European Stock Markets

Germany’s Economy Ministry announced on Monday that public and private consumption continued to rise in the first quarter.  “The German economy started the current year well,” the Economy Ministry said in its statement, followed by expectations that the growth will continue in the coming months.

European markets were further bolstered by a victory for German Chancellor Angela Merkel in a regional election.  Today also marks the first day in office for Emmanuel Macron in France, who expects to meet with Merkel in one of his first roles in office.  

The FTSE 100 was trading up 0.29 percent in early Monday trade, the DAX was up 0.22 percent and France’s CAC 40 started up 0.04 percent.  Stock market gains were led by the oil and gas sectors following a recommitment by Saudi Arabia and Russia to curb production until March 018.  The technology sector also contributed to the widespread gains as traders flocked to cybersecurity opportunities following the WannaCry global cyberattack that threatened hundreds of thousands of computers over the weekend.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.

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