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The price of WTI Crude Oil fell below $80.  It already happened recently as part of the  global market sell-off. At that time, the price of black gold bounced back quite quickly. This time, the fall could be for real.

And while the  relevant index for the C$ is the West  Canada Select, USD/CAD is ticking higher, getting closer to 1.1250.

The  swing low of crude oil is $79.08. Bullard’s suggestion that QE could continue  helped stocks and also oil prices to recover. Also Brent oil is sliding below $85.

There is no Canadian event scheduled for today. In the US, we have Markit’s Flash services  PMI as well as pending home sales.

The  Canadian dollar was the center of attention last week with the not-so-dovish BOC statement and the Ottawa shooting.

Canadian dollar USD chart loonie falling together with WTI under 80 October 27 2014

 

The really big level for USD/CAD is 1.1384, which is the 5 year high for the pair. On the way, it could  meet 1.1280 and 1.1340. Below, 1.12 provides support.