Besides the US dollar, investors pay close attention to oil futures. The reason of that is geopolitical factors and the Crude Oil inventories report in the United States. Oil prices extend gains and escalation of tensions between the United States and Iran. Brent Crude Oil has already managed to break above $58 per barrel. Nothing can prevent oil from a further rally unless Donald Trump abandons an idea to pull out of the nuclear deal with the Islamic Republic of Iran. For the time being, we can expect a gradual increase in oil prices to $59 per barrel.
The Sweet Crude Oil is also quite popular with investors. It has been trading above $52 per barrel after the American Petroleum Institute revealed its Crude Oil inventories report. According to the API report, last week the stockpiles of Crude Oil in the United States decreased by 7 million 130 thousand barrels, though experts predicted a slower fall. Now market participants anticipate the official data from the Energy Information Administration that will be unveiled tomorrow.
Surely, traders are quite satisified with the current developments on the market which provides support ot both oil prices and commodity currencies. Thus, the USD/CAD pair opened trades slightly below the level of 1.25, but it did not manage to hold gains. The strong US dollar still weighs on its opponents. The Canadian national currency is highly dependent of the movement of oil prices, so if traders decide to fix their profits, the USD/CAD pair is likely to rise. Currently, the situation hinges on the official report on Crude Oil inventories in the United States.
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