FX.co ★ TSX Futures Pull Back from Record Highs on Oil Pressures

On Wednesday, futures linked to Canada's S&P/TSX Composite Index declined following two successive record peaks. This downturn was driven by mounting pressure from leading Canadian oil firms. Both Canadian Natural and Enbridge were projected to start the day lower, continuing their weekly slide after U.S. President Trump indicated his administration's intent to resume crude oil imports from Venezuela, posing a threat to the market share of domestic energy exporters. Prime Minister Mark Carney, however, assured that Canadian crude remains both low-risk and competitive, even in the face of potential increases in Venezuelan exports. In the meantime, expectations for the Ivey Purchasing Managers Index suggest continued contraction in activity among Canadian goods producers. However, current trends in money markets leave the likelihood of further rate cuts by the Bank of Canada this year uncertain.