There was an explosion that is interrupting shipments of oil from Canada to the U.S. In fact, four pipe lines were shut down in the incident. Once this news hit, oil jumped $4 a barrel. However, two of the pipelines are back on line but the two others may take a while and that's a big problem if so.
These pipelines are responsible for 1.5 million barrels of oil a day. They supply about 15% of what the country needs. If this isn't able to be corrected quickly, look for oil to go much higher.
So that could be a weight on stocks and it could spill over into CAD trades also.
Also, Sears just announced poor earnings and a huge profit slump even when you account for their investment gains. They are bleeding cash at the moment. Cash and cash equivalents declined to $1.5 billion at the end of the quarter, down from $2.1 billion a year ago and $4 billion on Feb. 3.
They've got to plug that hole or they're going to have some very serious problems shortly.
With many economic numbers already behind us this morning, look for the New Home Sales to be the main numbers to watch for. For this may be one of the biggest factors affecting the carry trades (especially EUR/JPY and GBP/JPY). There's a lot of resistance for EUR/JPY at the 163.50-164.00 levels.
Be watchful! We live in interesting times for a trader.
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