USD/CAD rises above 1.40 for the primary time since 2020

The weekly chart of USD/CAD is wanting like a giant breakout.

Maybe the largest warning for the loonie right this moment comes from the oil market. Crude is greater right this moment after two days of declines however the IEA is warning a couple of shock of 1 million barrels per day of worldwide oil even when OPEC retains its curbs in place. That is based mostly on forecasts for greater manufacturing from the US, Canada, Guyana and Argentina.

OPEC was bullish on demand right now final yr however proved far too optimistic. In the event that they conclude that the oil market will not come into stability by retaining barrels off the market, they could resolve to combat for market share as an alternative.

Domestically, Canada is in a tricky spot because the housing market struggles, significantly in Ontario and BC. Some assist might come from stronger Chinese language stimulus however on condition that Chinese language shares are barely decrease once more right this moment and people dangers could also be tilted to the draw back as properly.

This text was written by Adam Button at www.ubaidahsan.com.



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