From its historic low of -$40.30 on April 20th 2020, WTI saw an unprecedented recovery in the months that followed. Although this recovery became more hard-fought once WTI breached $40 per barrel, gains continued throughout the rest of 2020, breaking above $50 per barrel in the first week of 2021 and a new yearly high of $67.94 on March 8th.
Further gains for the commodity are likely to remain an uphill battle; however, with the roll-out of coronavirus vaccines, the bias for WTI should remain to the upside as the vaccine rollout should prove to be a positive factor for the global economic outlook and, hence, the outlook for oil prices.
As a commodity-linked currency and Canada's dependence on its oil exports, we expect CAD's fundamental outlook to remain closely tied to the global economic outlook and oil prices. With both of these factors seeing a cautiously positive outlook, CAD holds a weak bullish fundamental bias.
Further gains for the commodity are likely to remain an uphill battle; however, with the roll-out of coronavirus vaccines, the bias for WTI should remain to the upside as the vaccine rollout should prove to be a positive factor for the global economic outlook and, hence, the outlook for oil prices.
As a commodity-linked currency and Canada's dependence on its oil exports, we expect CAD's fundamental outlook to remain closely tied to the global economic outlook and oil prices. With both of these factors seeing a cautiously positive outlook, CAD holds a weak bullish fundamental bias.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.