Today, oil pulled away from early highs. Experts link the fall of oil prices with profit fixing. Brent Crude Oil is trading at $69 a barrel. At the same time, experts note that the OPEC deal is effectively carried out in line with expectations. Light Sweet Oil is also trading under pressure, staying around $63.60 a barrel. Analysts say that there is a sound reason for pressure on WTI. Investors are still worried about the increase in crude production in the US. According to experts, the US oil production will expand to 10 million barrels a day in the near future. So far, oil prices are supported by the data from the Department of Energy, which showed a drawdown in the US oil inventories. Tomorrow, the government numbers will be published.
Due to correction of oil prices, commodity currencies are losing ground. Moreover, today the Canadian dollar suffers from additional pressure. The USD/CAD pair is edging up, staying around 1.2450. The Canadian dollar is weakening ahead of the release of the Bank of Canada’s meeting results. This data has major influence on the Canadian currency, as investors expect the key interest rate to rise to 1.25%. However, there are some doubts. Experts take into account the steady growth of the Canadian economy, but note that the bank can act differently than expected. Now the currency depends on the Bank of Canada and its decision on the further monetary policy. If the bank raises the rate and gives harsh comments, the Canadian dollar will grow against the US dollar despite the downward trend of oil prices.
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