FX.co ★ Global macro overview for 08/01/2016

Global macro overview for 08/01/2016:

In his yesterday speech, Bank of Canada Governor Stephen Poloz highlighted that the BOC would continue conducting an independent monetary policy in response to Canada's own economic developments in order to achieve the 2% inflation target. He also mentioned that the BOC has a number of conventional and unconventional financial tools to its disposal and will not hesitate to fight threats to the inflation target or to Canada's financial system. He also added, that the decline in commodity prices partially offset the depreciation of the loonie and boosts Canadian dollar revenues for exporters.

Crude oil prices reached a new 12-year low at the level of 32.09 yesterday, after breaking below all support levels on the weekly chart. Currently, crude oil is bouncing slightly to the upside and the weekly candle might close above the support at the level of 33.80 today. Nevertheless, it is too early to claim the downtrend is over.