The USD/CAD is within the pink as soon as once more and within the midst of a four-day shedding streak. Charges are buying and selling simply benea
The USD/CAD is within the pink as soon as once more and within the midst of a four-day shedding streak. Charges are buying and selling simply beneath 1.2100 and inside a stone’s throw of 2017’s low (1.2061). Right this moment’s worth motion within the Loonie isn’t a lot of a shock as WTI crude oil is holding above $65.00. Following the OPEC Month-to-month Oil Market Report (MOMR) hitting information wires, WTI has managed to reverse early-session losses.
All in all, 2021 has been an especially bullish 12 months for crude oil. The consequence has been a surging Canadian greenback and a downturn within the USD/CAD. Will this morning’s MOMR launch upset the apple cart? Unlikely. Listed below are a number of OPEC speaking factors relating to the month of April:
- Spot crude costs fell in April for the primary time in six months.
- The OPEC Reference Basket (ORB) worth fell by $1.32 (2.0%) in April.
- 12 months-to-date, the ORB is up $17.91 (41.6%).
- U.S. stimulus and Asian COVID-19 restoration will assist world financial development of 5.5% for 2021.
- For 2021, world oil demand is projected to extend by 6 million barrels per day.
- U.S. crude oil imports rose 0.2 million barrels in April to six million barrels per day. That is the very best stage in 10 months.
In brief, demand is up because of the evolving COVID-19 restoration and oil costs are very a lot in bullish territory. For the USD/CAD, the sturdy vitality market is driving values towards 3.5-year lows.
OPEC Speaks, The USD/CAD Dives Decrease
2021 has been an epic 12 months for USD/CAD bears. Charges are off greater than 4.9% and trending decrease.
USD/CAD
Backside Line: For the reason that OPEC MOMR report went public, WTI has reversed course and the USD/CAD has exhibited bearish motion. If charges fall to 2017’s low (1.2061), an extended commerce will come into play.
Till elected, I’ll have purchase orders within the queue from 1.2064. With an preliminary cease loss at 1.2019, this commerce produces 45 pips on an ordinary 1:1 threat vs reward ratio.