Commodity currencies are trading broadly weaker – BNPP

Research Team at BNP Paribas, notes that the commodity currencies are trading broadly weaker Tuesday morning, giving back yesterday’s oil-induced-gains as WTI hit a one-year high following increased optimism around the likelihood of a credible oil production freeze/cut.

Key Quotes

“Our Commodity Strategy team thinks there is still lots of implementation risks surrounding an OPEC deal and they view that WTI will struggle to stay above USD 50/bbl for long. That said, there may still be some scope for USDCAD downside, with our BNP Paribas STEER™ model signalling that USDCAD is overbought versus its short-term fair value of 1.3069. This week, there will be several important data releases out of China, including trade balance (Thursday) and inflation (Friday).”