Will LCrude Continue Dropping

The LCrude surprisingly climbed today, after the Crude Oil inventories that came out turned out to be more positive than expected.

At this stage, however, that hasn’t affected the Canadian dollar, which moves in correlation with LCrude. USD/CAD dropped during the European and American sessions with almost 100 pips, but that happened before the Crude Oil inventories data and the rest of the fundamentals today came out.

What is interesting in this case is whether this is the end of the LCrude move to the downside that has been continuing for two months now, or will we see another drop towards 38.00 – 38.50.

Whether that will happen is hard to predict, but one thing is clear – the LCrude drop is nearing its end and it’s time to see a seasonal move to the upside.