USD/CAD continues rally as Oil under pressure

  • Oil is disliking the progress made in the Iran talks
  • After a few months of calmness in the market, high intraday volatility is back
  • WTI has collapsed to $51, while Brent is now moving towards $56
  • This is dragging the oil currencies lower as well, with CAD and NOK under pressure
  • USD/CAD is now at 1.2770 and there is little resistance until the current yearly high at 1.2830 posted in March
  • Predicted Markets note “There have been 25 times since October 2010 when – as was the case last week – USD/CAD has broken Friday’s high on Monday by at least 50 pips. Of the 25, only 1 went on to close the next day with net gains of more than 1.5 cents. The equivalent level on Tuesday is 1.2775.

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