Risk trades starting to slip
Sentiment improved in Asia and early European trading but US markets have been in a sour mood all week and it's creeping back in. WTI crude oil rose as high as $37.55 an hour ago but has now fallen to $36.90.
That drop is taking the Canadian dollar with it and has pushed USD/CAD up 20 pips in the past hour. Stock futures are also giving back some gains despite some good earnings reports late yesterday and early today.
It's going to be a battle today and managing risk will be key. Yesterday's high in USD/CAD was 1.3202 but I wouldn't expect that to hold if equities fall to fresh weekly lows.
