WTI is down by 2.4% as price falls below the 100-day moving average
Risk-off sentiment continues to be the major theme in trading today and it is also putting a major dent in oil prices as we’re seeing WTI fall by more than 2% on the day now. Price is contesting a firm break of the 100-day MA (red line) and if sellers manage that, it would see the bias in oil turn to being more bearish instead.
Iran sanctions and the more than likely OPEC+ output cuts extension are among factors that should help oil in the medium-term but with markets looking jittery as ever now, it’s hard to rule out a further decline particularly when a key technical break such as this is looming just around the corner.
The move lower in oil and weaker risk tones are part of the reason weighing on the Canadian dollar today with USD/CAD rising above the 1.3500 handle to highs near 1.3520 currently. For the loonie, do be reminded that we still have the BOC meeting decision later today.