2016-10-19 12:57:08

Today, Minister of Oil of Saudi Arabia said that recent meeting in Istanbul has narrowed the gap in the positions of OPEC countries and the countries outside the cartel.

According to the Minister, oil market continues to improve and the decline in oil prices will soon stop.

In response to these comments, spot price of oil has soared up to 0.5 USD per barrel. Along with the rise in oil price the price of Australian and Canadian dollars has also grown. Oil and gas is one of the most important sectors of the economies of these countries. Oil is an important source of export revenue for Canada and oil prices are in strong correlation with the price of the Canadian dollar. The Canadian dollar depends on the trend in the oil market.

Yesterday, American petroleum Institute (API) released weekly report on changes to oil stocks in the USA. The oil stocks have dropped by 3.8 million barrels. Today, oil prices and the Canadian dollar are growing on this news and in anticipation of today's report from the US Ministry of Energy on stocks of oil and petroleum products in the country at 17:30 GMT+3.

Today at 17:00 interest rate decision by the Bank of Canada will be known and the Bank’s comments. Currently, interest rate is at the level of 0.5%. Although inflation in Canada is decreasing, the Bank of Canada believes that the core inflation will approach the target of 2% only in 2017 when the negative effect of the decline in prices of energy will be eliminated.

Last month the Bank of Canada did not change interest rate in the country, keeping it at the level of 0.5%. However, the Bank of Canada still adheres to softer monetary policy.

Volatile in the market will increase at the time of news releases.USD/CAD: Interest rate decision by the bank of Canada.  Fundamental analysis for 19/10/2016