A rebound in energy prices – both WTI crude and natural gas – is likely catalysing the near-term strength in the CAD and NOK. This month, WTI crude has rallied approximately 8%, and natural gas is testing levels not seen since 2011. And with eurozone issues lingering, EUR/CAD is bearing the brunt of the selling. Longer-term charts warn of further weakness, and the recent break of a multi-month trendline also points to lower prices into next quarter. Similarly, EUR/NOK has turned lower from weekly cloud resistance, also presenting favourable selling levels.
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Barclays