Oil prices have been on a gradual path of rises for quite some time. And now, WTI crude oil tops the 2015 high of $62.60 and reaches new highs $62.77.
It currently trades at the highest levels since December 2014. The breakout awaits confirmation. Back in December 2014, prices of oil were tumbling down from above $100 and up to $50 dollars, in a straightforward manner. So, the next level of resistance can only be marked at the next round number, at $65 and then at $70.
The move higher in oil prices should give a boost to the Canadian dollar. The loonie enjoyed the superb jobs report on Friday with USD/CAD falling under 1.24. It then took some profits but dropped once again on the upbeat quarterly report from the BOC.
Dollar/CAD is on the rise again, mostly due to the renewed strength of the US dollar and also on a miss in Canadian housing starts, that stood at only 217K against 240K expected.
The Bank of Canada convenes on January 17th and is now expected to raise interest rates. Falling oil prices in early 2015 triggered a rate cut by the BOC, and now the Ottawa-based institution will likely hike amid rising oil prices but mostly as Canada’s labor market is heating up.
More: USD/CAD: Job Report Enough For BoC To Hike This Month – CIBC
Here is how it looks on the monthly chart of WTI Crude Oil: