It’s Friday and meaning it’s time for the Baker-Hughes Rig Rely. As of late, the numbers have been rising in lockstep with oil costs. This week reveals one more acquire, with U.S. oil rigs in operation coming in at 324, up from 318. Subsequently, combination oil and pure gasoline rigs are additionally up by six, now standing at 417. For the second, North American producers are taking a bullish stance towards the power markets.
In a Stay Market Replace from Thursday, I lined the continuing blockage of the Suez Canal. The state of affairs hasn’t modified, with the huge freighter Ever Given nonetheless caught within the mud. Subsequently, funding megabank JP Morgan suggested its shoppers to purchase oil and power shares. In response to JP Morgan chief international strategist Marko Kolanovic, if the state of affairs just isn’t resolved quickly, transport costs and commodity costs will soar. This may artificially spur inflation and place vital strain on many markets.
In the event you consider JP Morgan’s evaluation, then it’s time to promote the USD/CAD. From a post-Baker-Hughes rig depend technical standpoint, it is a dangerous proposition.
Rig Rely Rises, USD/CAD Falls
As we roll into the weekend, the every day uptrend within the USD/CAD is legitimate. Charges are above draw back help and hovering close to the 1.2600 deal with.
Overview: Because the Baker-Hughes rig depend has been launched, WTI crude oil futures have entered rotation above $61.00. Be looking out for any headlines from the Suez Canal over the weekend. If the Ever Given is all of the sudden again in operation, WTI will probably be poised to fall on subsequent week’s open. Ought to the state of affairs escalate, I’ll be in search of a brief entry level within the USD/CAD.