CURRENCIES: Oil-pegged Currencies Gain As U.S. Says It Will End Waivers For Iranian Crude Imports
April 22 2019 - 8:54AM
Dow Jones News
By Aaron Hankin
Currencies linked to commodity prices were trading higher on
Monday after the U.S. government said it was halting waivers for
countries that import Iranian oil.
Biggest movers
The currencies of Canada and Norway -- two of the world's
largest oil exporters -- are the biggest movers in early Monday
trade. The Canadian dollar had gained 0.3% against the greenback,
with a single dollar fetching C$1.3358, while the Norwegian krone
added 0.2% to 8.4990.
The news of potential sanctions pushed the price of both West
Texas Intermediate crude and Brent crude prices higher by more than
2%.
Eight countries had been granted a 180-day waiver to buy Iran's
crude despite U.S. sanctions, but May 2 is the deadline for a
renewal and the U.S. has indicated that it won't refresh waivers
for China, India and Turkey -- among Iran's biggest customers. The
end of waivers is seen as bullish for oil prices, since it impedes
exports from a large crude exporter.
Read:Oil prices jump over 2% on expectations U.S. will halt
waivers on Iran oil imports
(http://www.marketwatch.com/story/oil-prices-jump-over-2-on-expectations-us-will-halt-waivers-on-iran-oil-imports-2019-04-22)
What are analysts saying?
Marios Hadjikyriacos, investment analyst at XM said a pending
central bank meeting dampened the rally in one of the oil-linked
currencies. "Even the Canadian dollar failed to gain substantially
on Monday, unable to capitalize on the surge in oil prices," he
wrote.
"This likely underscores that traders are somewhat reluctant to
increase their exposure to the loonie ahead of the BoC's [Bank of
Canada] policy meeting on Wednesday, where the central bank may
strike a more cautious tone amid some softness in the domestic
economy."
How are major currencies trading?
The ICE Dollar Index, a popular gauge of the strength of the
U.S. dollar, was down 0.1% at 97.346. The index made a 2-week high
on Friday, and is less than 1% from hitting its highest level since
mid-2017.
It was a subdued start for other major G-10 currencies with the
euro unchanged at $1.1248 and the British pound off less than 0.1%
at $1.2987.
Read:U.S. stock futures point to losses at the start of
post-Easter trading
(http://www.marketwatch.com/story/us-stock-futures-point-to-losses-at-the-start-of-post-easter-trading-2019-04-22)
What's on tap for the day
On the economic calendar, existing home sales data for March are
scheduled for release at 10 a.m. Eastern time.
Read:Here are the biggest hurdles oil-market bulls will face in
the next few months
(http://www.marketwatch.com/story/here-are-the-biggest-hurdles-oil-market-bulls-will-face-in-the-next-few-months-2019-04-18)
(END) Dow Jones Newswires
April 22, 2019 08:39 ET (12:39 GMT)
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