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WTI Crude Oil highest since December 2014 – Will CAD follow?

Oil prices have been on a gradual path of rises for quite some time. And now, WTI crude oil tops the 2015 high of $62.60 and reaches new highs $62.77.

It currently trades at the highest levels since December 2014. The breakout awaits confirmation. Back in December 2014, prices of oil were tumbling down from above $100 and up to $50 dollars, in a straightforward manner. So, the next level of resistance can only be marked at the next round number, at $65 and then at $70.

Update: the price already reached a high of $62.98. It seems like the breakout is confirmed.

The move higher in oil prices should give a boost to the Canadian dollar. The loonie enjoyed the superb jobs report on Friday with USD/CAD falling under 1.24. It then took some profits but dropped once again on the upbeat quarterly report from the BOC.

Dollar/CAD is on the rise again, mostly due to the renewed strength of the US dollar and also on a miss in Canadian housing starts, that stood at only 217K against 240K expected.

The Bank of Canada convenes on January 17th and is now expected to raise interest rates. Falling oil prices in early 2015 triggered a rate cut by the BOC, and now the Ottawa-based institution will likely hike amid rising oil prices but mostly as Canada’s labor market is heating up.

More:  USD/CAD: Job Report Enough For BoC To Hike This Month – CIBC

Here is how it looks on the monthly chart of WTI Crude Oil:

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.