WTI crude oil is trading at $106.52 from a high of $108.58.
The turn in oil has led to a bounce in USD/CAD after it successfully held 1.2900. The pair stands to finish the week lower as the US dollar declines badly. That’s a bit counterintuitive given the weakness in oil and natural gas but the market is more worried about rates than the ebb and flow of energy prices.
Looking at the USD/CAD chart, I’m concerned about the weak rejection of the double top at 1.3080. The pair is languishing around that level and could take another run (and break through) the next time there’s a strong USD bid.