WTI Crude down $1.30 to $41.33
US crude broke below last week's low of $41.35 to a six-and-a-half year low.
The drop in crude boosted USD/CAD to 1.3124, just below yesterday's high of 1.3127.
The best hope for crude bulls in the short term might be Tropical Storm Danny, which formed today in the mid-Atlantic. However, with more US production moving onshore (shale), the effects of hurricanes won't be as pronounced as in the past.
The drop in crude prices has spilled over to the stock market and is also pushing long end yields lower. Breakevens are also breaking down with 5-years down 4 bps to 1.19%, which is the lowest since January.
