The oil market could start to recover in the second half of next year, which could benefit the currencies of oil-producing countries, an analyst said Monday.
“The oil market is over supplied, doesn’t look great in the short run, but there is still a recovery story for the second half,” Dominic Schnider, UBS Wealth Management’s head of commodity and Asia-Pacific forex, told CNBC. He added that a rise in oil prices could particularly benefit the Canadian dollar, which is is closely linked to the U.S. economy, which is showing indications of a pickup.The Canadian dollar is down 20% in 2015.
But some currencies will not benefit from a rebound in oil prices. Schnider told CNBC that he predicts a high single-digit decline in the Australian dollar against the greenback in the next 6-12 months amid a high current account deficit and a slowdown in trade.
Watch the entire CNBC interview: