U.S. Global Investors [www.usfunds.com]

Oil and the Canadian Dollar are Marching in Tandem

BNN host Michael Hainsworth welcomes Frank Holmes to the program to help explain the recent lows in the price of crude oil. To start, Frank notes the importance of tracking the purchasing managers’ index (PMI) for commodity performance. He says that historically, PMI has acted as a useful forward-looking indicator for the performance of copper, iron and oil.

Frank also notes that interestingly enough, the price of oil seems to be moving in synch with the Canadian dollar. As oil prices have fallen recently, so has the Canadian currency.

 

Tune in to the replay for the full discussion!

 

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.