USD/CAD: USD/CAD refreshed its annual highs yesterday, having reached 1.2965 level, before pulling back to the lower area. That means the pair is currently trading higher on the day by about half of percent which indicates a sharp descending in the market’s broader appetite for risk and losses in crude oil markets. Concerns about the rapid spread of Omicron in Europe and new restrictions being introduced by countries triggered fears about the US may be only a few weeks behind. In terms of Canadian events, it’s worth paying attention to October Retail Sales which are going to be published today followed by October GDP numbers on Thursday. Otherwise, the pair will follow broader risk appetite, which will be driven by Omicron headlines.
AUD/USD: During the New York session, the Aussie is edging lower, trading at 0.7110 after the bulls aborted the downtrend for a while. The market sentiment remains downbeat, supported by the Omicron outbreak worldwide. The UK and some European countries reimpose social restrictions as health government offices try to contain the fourth wave. An empty economic calendar leaves the AUD/USD pair pressured by the market sentiment and greenback’s dynamics, including political domestic developments and demand for US Treasuries.
WTI: Oil prices are bearish on the first day of the week, with front-month WTI futures currently trading for more than $2.50 lower as traders worry about the spread of Omicron and associated lockdowns and restrictions before upcoming holidays. During Asian session, WTI fell below the $70 level and a key area of support from last week. The sellers keep pressuring the market with WTI recently falling as low as $67. Although now it has stabilized slightly below the $68 level. The news backdrop isn’t exactly bullish. US Baker Hughes weekly rig count released last Friday reached its highest level since April 2020. It’s a leading indicator that suggests higher US output in the coming months.