In reaction to the coup by the Egyptian military that ousted Egyptian President Mohamed Morsi on 3 July 2013, the global price of crude oil is reported to have shot up to over $100 a barrel. While global markets with an emphasis on the US have responded with concern for the immediate future of oil shipments from the troubled region, this has been good news for the Canadian economy whose chief export is crude oil. As such, the CAD experienced a rebound from a 21 month low in its growing deficit against the USD, which has experienced significant gains in the wake of recent reports outlining impressive statistics for manufacturing and other economic health indicators.
Analysts believe that the CAD will continue to experience a slight advantage from the oil crisis over the coming weeks as the situation in Egypt unfolds.. Additionally, the price of crude can be expected to jump the markets take time to resettle following this upset.
US to Release Jobs Reports for June
The much anticipated US unemployment and Non-Farm Payrolls reports are set to be issued tomorrow 5 July 2013 at 12:30 UTC. These highly valued assessments of the American economy are generally trusted to provide a basic picture of the health of the labor markets which are the backbone of the US economy.
In the lead up to the report, analysts witnessed a slight slump in trading for the USD as traders are wary of the optimistic forecasts which have been expressed in recent days. That said, analysts have predicted that the overall unemployment numbers are likely to improve while the NFP may suffer.
Analysts remind traders of the importance of these reports as they can be highly influential in relation to interest rates, thus affecting the USD in its pairings versus opposing currencies.
Euro Weakens While Sterling is on the Rise
Confidence in the Eurozone economy continued to drop as the Euro was reported to have experienced continued losses in trading since yesterday. Analysts note that this most recent string of losses forced the Euro down near to its lowest levels in almost a month.
These losses come against the backdrop of the unlikelihood that the European Central Bank will make any significant changes to its monetary policies as well as an impending ECB meeting that will among other topics, address concerns over the faltering Portuguese bond situation. For its part, the GBP exhibited its most impressive showing against the USD in a month.
Traders can likely look forward to a strengthening GBP and an unstable Euro over the course of trading for the coming week.