We all know that tensions in the Middle East have been the driving force behind the growth of the oil prices for the last several days. After all, when Iran and Iraq are right in the middle of the conflict, we cannot help but be concerned not only over the threat of a full-blown war, but also over oil supply shortage. And, as we know, that is always a reason for the per-barrel price growth. Surely, we have been enjoying oil growing and taking oil-dependent currencies higher with it. But, tensions are dying out. And with them fears for the supply cut.
Today we are faced with the real threat for the currencies relying on oil. Among them is the strongest of the bunch – CAD. USD/CAD chart is seen flying higher and higher today, which clearly indicates not only the decline of Canadian national currency, but also the newly found strength of USD. Of course, it seems too early to tell whether oil prices are going to stay low or whether there is going to be another breakout, but right now it is pretty hard to tell what will happen to USD/CAD.
All I know is that the couple gives us a perfect possibility to earn right now. And we should definitely take it. Just be sure that you are doing everting according to your trading signals.