The rising trend in crude oil (WTI) picked up speed yesterday, hitting $57.30 in the afternoon after breaching technical levels on Friday (climbing above $55.25). The next zone to watch is the $58-$62 range, where trading was active in the second quarter of 2015. The CAD gained 80 points on Monday to end at its highest point of the trading day.
The week looks relatively sparse in terms of economic news, which leaves market players in search of themes and ideas on which to base their decisions. Crude oil prices could be part of the equation and place USD sellers at risk vs. the CAD. Another potential theme to be considered is the progress of tax reform in the United States; Senator John McCain, who has already blocked the Trump administration’s health-care reform, says he is opposed to the tax plan put forward by the White House.
In a market in which a December key rate hike from the U.S. Federal Reserve is already priced at a 92% probability, the greenback could run out of steam. The 1.2500-1.2650 range could be appealing for USD buyers.
Olivier Cosialls
Range of the day: 1.2700 – 1.2840