USD/CAD rises to the highest since early-January 2019.
WTI drops heavily on weekend headlines from Russia and Saudi Arabia signal widening of the demand-supply gap.
Coronavirus fears weigh on the demand outlook.
USD/CAD takes the bids to 1.3690, up 2.05%, the highest since early May 2017, during the Asian session on Monday. The Loonie pair surged at the week’s start following the weekend headlines from the key oil producers. However, the ongoing coronavirus (COVID-19) fears kept the bulls in power then after.
Given the Canadian economy’s heavy reliance on oil exports, declining WTI will have an inverse impact on the USD/CAD pair. That said, black gold recently dropped to the four-year low around $30.60 amid expectations of widening demand-supply gap following the headlines from Russia and Saudi Arabia.
As if the break of Organization of the Petroleum Exporting Countries (OPEC) in the recent meeting was not enough, Russia announced its intention to not follow the global supply cut accord as COVID-19 takes an increasing toll on the economy. Additionally, Saudi Arabia crossed wires and showed readiness to boost exports.
Meanwhile, the deadly virus continues to spread rapidly in Europe and the US. The latest updates suggest the death toll in Italy rises to 366 from 233 whereas the US plans to stop travel via cruise after the Diamond Princess incident. Fears bloomed after Washington Post circulated the news that some of the White House policymakers anticipate double or more count of the deadly virus in the next 48 hours. It’s worth mentioning that the US Vice President Mike Pence conveyed the lack of testing kits on Friday.
Amid all this, the US 10-year and 30-year treasury yields seesaw near the record lows under 1.0% and 0.50% respectively whereas stocks in Asia are also in the sea of red by the press time.
Looking forward, investors will keep eyes on the coronavirus updates, coupled with oil-related headlines for fresh direction.
Technical Analysis
The year 2017 high near 1.3800 flashes on the bulls’ radar while a pullback below May 2019 top near 1.3565 can trigger fresh selling towards February month high near 1.3465.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
