February 22, 2022
USD/CAD: The Canadian dollar fell against the US dollar the last week and remains under pressure even though oil prices showed a bullish dynamic yesterday. Oil is getting a boost because traders expect sanctions on Russian exports. The market can surely show growth, considering that investors recently decided to close their long positions in WTI crude oil. Conflicting reports between escalation and de-escalation affected energy markets and made it more volatile. As for domestics, Canadian Retail Sales in January rose as Canada’s statistics showed, supporting expectations of the Bank of Canada to start hiking interest rates at the March policy announcement.
NZD/USD: Kiwi started the trading week with bullish signs before the last pullback dragged it down to 0.6700 on Tuesday morning in the Asian session. The kiwi pair’s initial reaction was positive amid the hawkish hopes from the Reserve Bank of New Zealand and news over the Biden-Putin meeting before Eastern Europe actions supported the risky mood on the markets. It’s worth noting that Fed speech and US data this week, including February PMI and GDP data, will be closely watched, but geopolitical developments could be more significant.
WTI: Yesterday’s session looked pretty negative for Western Texas Intermediate traders in the US, but later quotes ended up in a positive zone due to the escalation of the Eastern Europe conflict. WTI showed a bullish impulse, having jumped from its lows and reached a daily high at $94 level before retreating to the $93.90s region. It’s important to note that Russia is the third-largest oil and gas producer in the world, and an escalation of the conflict pressures oil prices due to oil shortage concerns during the ongoing worldwide reopening. However, WTI bulls may face some resistance, located all the way from 95 to 100 USD per barrel.