- Crude oil[2] volatility may continue in the aftermath of intense weather conditions in the US Gulf Coast (supply constraints)
- USD/CAD[3] exhibiting short term consolidation ahead of BoC Deputy Governor Wilkins speech later today
- IG Client Sentiment[4] showing 2 traders long for every short trader, setting the scene for potentially lower prices for USD[5]/CAD[6]
Crude Oil developments and Deputy Governor Wilkins speech may offer guidance for USD/CAD
The USD/CAD pairing has been trending[7] lower since the March high and may continue this trend as crude oil[8] climbs higher, however, price advances may be limited as the market enters oversold territory on the stochastic oscillator[9]. The recent uptick in crude oil arose as supply concerns developed around the US Gulf Coast in the wake of Hurricane Laura.
Learn how USD/CAD tends to be correlated with the oil market in this article[10]
Crude Oil Daily Chart
Chart prepared by Richard Snow[11], IG
Later today the EIA Cushing crude oil stocks change and EIA distillate stocks change should shed insight into demand and supply[12] dynamics as the global economy attempts to re-ignite economic activity. Oil is often viewed as a benchmark for economic expansion due to its use in manufacturing and distribution – which increase during economic recovers.
Taking a back seat on the economic calendar is the anticipated appearance of the Bank of Canada (BoC) Deputy Governor, Carolyn Wilkins at the Bank’s workshop titled, “Towards the 2021 Renewal of the Bank of Canada’s Monetary Policy Framework”.
For all market-moving data releases and events see the DailyFX Economic Calendar[13]
USD/CAD Technical Levels
For the better
