Daily Commentary & Market Insights, Mar.10, 2020

Good morning,

Oil prices collapsed over the weekend recording a low of 27.34 per barrel representing the lowest price since the ‘91 gulf war. The collapse was due to no agreement between Russia and Saudi Arabia to curtail production. Today WTI prices have recovered some losses at 33.7.  Wall street and Bay Street has experienced a bout of trading halts with the DOW recording a loss of -7.79% representing its worst daily drop on record. North American indices are seeing an upswing as markets recover over 3% from yesterday’s plunge. The USDCAD is starting to consolidate after oil prices pare losses from yesterday’s wild price swings. The pair traded between 1.3427 and a high of 1.3688 in the North American trading session. The rest of the week is light on the data calendar as the market focuses on the oil price war and developments in curbing the spread of the coronavirus. The market awaits for headlines surrounding Trump’s plan to offer economic stimulus measures such as temporary payroll tax cuts and paid leave for hourly employees unable to get to work. The POTUS also urged the FED to continue to cut rates. Further measures by the FED to cut rates such as the emergency cut from last week could lower the USD’s price against CAD as any disparity in rates could rebalance USDCAD’s price to more normative levels.