Rebound for the CAD, which at the moment is trading at 1,2826 against his American counterparty bringing the USD/CAD cross down 0,33%.
A Canadian Dollar which have interrupted his 2-day decline and is limiting the 12-days peak for the USD/CAD at 1,29 gained during yesterday’s session. Rumors from the main operators point out this behavior as the main reversal for the cross which reach his peak during last few days following the Canadian economic conditions, growing at an unsustainable level, and the general optimism following the oil price action.
The Loonie however is still benefitting from the solid rebound in the Oil price on both sides of the Atlantic, which is currently clearing the losses of the beginning of this week and is extending the gain also in relation to the concerns coming from Canada and Libya.
While in the first Country it was declared a state of emergency following a fire that stopped the extraction of the raw material, in Libya the geo-politics tension persists between the eastern and the western party, which have recently blocked a cargo belonging to the giant Glencore preventing him to load.
All those concerns regarding a stop in the supply bring investors to ignore the umpteenth rising in the US Oil stock, as indicated in the weekly EIA report. The stock has increased by 2.8 million of barrels last week, much more above expectations.
At the moment both Oil benchmarks are rising, with WTI +1,31% at $44,69bbl and Brent up 1,06% at $45,40bbl.
Looking ahead, the market focus will be on the US NFP data and the rig count expected for tomorrow, which could influence the Black Gold’s price action, without counting news coming from Canada and Libya.
The USD/CAD cross on the other hand will continue to be at the mercy of the Oil price.
Important levels for the cross are 1,2800 and 1,2750 to the downside (mainly psychological levels), while if the cross would reverse his price action, the first resistance is seen at 1,2900.