USD/CAD camps out on 1.46 handle as oil plunges over 20%, DXY soars
- USD/CAD rockets to the 1.46 handle as markets buy up US dollars.
- WTI drops like a stone by over 20% on over-supply fears.
USD/CAD has rallied to the vicinity of the 1.46 handle as the USD squeeze is well and truly on. At the time of writing, USD/CAD is trading at 1.4551 having spiked within a range of between 1.4166 and 1.4650 – currently +2.50% at the time of writing.
The markets are in a state of frenzy with the VIX embarking on the GFC highs of 96.40 having rallied to a high of 85.47 form a low of 69.37 on the day. COVID-19 is threating to repeat if not surpass the devastation of the prior crisis and the commodity complex is taking a hard hit. Thomson Reuters CRB Index is down 7.63% on the day having plummetted to a low of 119.78 from a high of 127.90. Copper is down around 8% and oil is down a whopping 20%, threatening to break below the $20 psychological handle.
WTI plunges as no production cut insight
"WTI plunged again as Saudi Arabia instructed Aramco to keep production at 12.3m barrels per day," analysts at ANZ Bank exlained.
"News for the sector continued to deteriorate. Haliburton, the world’s largest fracking company, is furlong-ing 3,500 workers at its Houston headquarters for 60 days. Employees will work one week on/one week off schedules and won’t be paid for days they don’t work."