The price of WTI Crude Oil fell below $80. It already happened recently as part of the global market sell-off. At that time, the price of black gold bounced back quite quickly. This time, the fall could be for real.
And while the relevant index for the C$ is the West Canada Select, USD/CAD is ticking higher, getting closer to 1.1250.
The swing low of crude oil is $79.08. Bullard’s suggestion that QE could continue helped stocks and also oil prices to recover. Also Brent oil is sliding below $85.
There is no Canadian event scheduled for today. In the US, we have Markit’s Flash services PMI as well as pending home sales.
The Canadian dollar was the center of attention last week with the not-so-dovish BOC statement and the Ottawa shooting.
The really big level for USD/CAD is 1.1384, which is the 5 year high for the pair. On the way, it could meet 1.1280 and 1.1340. Below, 1.12 provides support.
