Following an active economic calendar last week, underlined by major earnings reports, central bank meetings, and jobs reports, this week is decidedly quieter on the data front. Accordingly, it’s not surprising to see most major markets consolidating last week’s moves while traders await the next catalysts.
One market that is seeing some significant movement is oil. As my colleague Joe Perry noted earlier today, WTI crude oil is pulling back from 6-year highs today after hints of a de-escalation between Russia and Ukraine. It remains to be seen whether the ongoing geopolitical tensions in Eastern Europe will continue to recede, but if there isn’t an outbreak of military action, oil bulls may continue to take profits after a nearly 50% rally from the December low.
Of course, when traders hear oil, they immediately think of the Loonie. Oil is Canada’s most important export, so the gyrations in the oil market have a big influence on the value of the loonie, and sure enough, the CAD is the weakest major currency so far today.
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