Interest Rates & World Oil

I’d forgotten about a piece that I’d written in October 2017 about BNN’s no longer showing daily interest rate fluctuations and the Loonie’s value in  U.S. dollars. Back then the Loonie’s value in green backs was 80 cents with world oil hovering about $50 a barrel.

But since October 2017 Canada’s BNN has become Bloomberg’s BNN, and the numbers that stopped appearing then are back. These days, November 9 -11, 2018; the Loonie has fallen from 80 cents U.S. to less than 77 cents even when oil had risen to over $70 a barrel. But also since then the U.S., Canada’s most important importer of Tar Sands oil has been reported to have become a net exporter of oil, perhaps helped by oil prices recent increase to above $70.

Since the threat of increased interest rates in North America, the price of gold has remained within the $1225-1235 range; and I continue to watch the mostly stationary price of gold  to confirm the trepidation central bankers must be experiencing about putting overnight interest rates back above the negligible 2% rate.