Watch for the movements of both of the major crudes today. That’s right – just like we started last week, the same troubles are plaguing our trading today. Tension in Saudi Arabia are only favoring the growth for oil prices today. And the thing is that we know for sure – oil is going to drag some of the currencies up with it, so some of the currency couples are prone to shakes today and up until the time the situation in Saudi Arabia stabilizes.
So, what is going on? Well, in short Saudi Arabia in now on the brink of the war with Iran. On 14 September [most likely] Iran drone-stroke Saudi Arabia. This led to fire at Saudi Aramco oil corporation. After the incident UAS stated that their troops are fully prepared for escalation of the situation although it is clear that the presence of US military in the Middle East is only going to complicate things.
Of course these events have only sparked our fears in the lack of oil supply and it is now clear, why the prices for oil were so unstable lately. And it is also clear that in the nearest time we should not except any stability from the crude and as a result from all of the currencies tied to the crude. Like CAD, for example.
With situation like that, it is no wonder that our trading signals for CAD/USD are so popular.