Oil is down by practically 2% on the day now
WTI is down by 1.eight% on the day now to $52.70, falling near $1 as as soon as once more the lack of patrons to discover a agency break above the $54 deal with is biting at oil costs as we start the brand new week. For essentially the most half, the draw back right here might be attributed to the marginally bitter danger tones we’re observing to begin European buying and selling.
Equities are holding largely decrease nonetheless and Treasury yields are down throughout the curve as effectively. The damaging tone throughout property can also be impacting oil, therefore the drop we’re seeing for the time being.
Because it stands, any upside break in oil should get previous the $54 deal with which is proving to be a very cussed resistance barrier for patrons. The longer value bounces across the area right here, the much less satisfied I’m that the oil rally to begin the 12 months could have some respectable legs to go. The truth that fundamentals aren’t too supportive is not serving to its case both.
That mentioned, the decrease oil costs is not actually impacting the loonie all an excessive amount of although. USD/CAD is principally flat now at 1.3218, buying and selling in a slender 26 pips vary to begin the day. However look out for any modifications within the danger narrative later in North American buying and selling, I reckon that would be the one that can stick and impression oil in addition to the loonie within the session forward.