Crude Decline Weighs On The Loonie
?? Fundamentals
Canadian Dollar futures have pulled back over the past few sessions, following Crude Oil’s lead. The US is the largest importer of Canadian Petroleum and the 8.53-million barrel build in Crude Oil inventories suggests that the US Oil market is very well supplied. There are also rumblings that Saudi Arabia is attempting to decrease the price of Oil, fearing that the current price levels could quash demand. The Middle East nation is pumping about 10 million barrels a day of Crude Oil, and is willing to pump more if prices keep rising. The turnaround in the Loonie could be attributed to the unwinding of long positions established in recent weeks versus the US Dollar.
?? Technical Notes
Turning to the chart, we see the December Canadian Dollar moving steadily higher from the beginning of June on. Friday’s spinning top candlestick indicates that the market may be poised for a pullback. The RSI indicator has been drifting sideways to lower, even as prices were rising, also hinting that a reversal may be on the horizon.
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