With crude oil prices rebounding, attention may turn to gains in resource-rich currencies

With crude oil prices rebounding, attention may turn to gains in resource-rich currencies

07.12.2021

Yesterday, the three major U.S. stock indices all rebounded, creating a full-blown risk-on market characterized by rising stock prices, interest rates, and oil prices. WTI crude oil recovered to the key $70 level and is currently trading in the $70.1 range per barrel. The VIX (fear index) fell by about 11% and is hovering around 27.1. Gold remains largely unchanged, trading in the $1,780 range.

In the foreign exchange market, the Canadian and Australian dollars—currencies of resource-rich nations—are rising in tandem with the surge in crude oil prices. In particular, as market sentiment shifted toward risk-on, the Canadian dollar rose sharply against the Swiss franc. The CAD/CHF pair rebounded by more than 100 pips, climbing from 0.712 to 0.726.On the daily chart, the CAD/CHF pair has formed an "engulfing candle" that encompasses the real bodies of the past five candles. We need to closely monitor whether this upward momentum will continue into the latter half of this week.

Today, German industrial production and UK Halifax house prices are scheduled for 4:00 PM, the German ZEW Economic Sentiment Survey for 7:00 PM, and the Canadian and U.S. trade balances, along with the final U.S. third-quarter nonfarm labor productivity figures, for 10:30 PM.at 12:00 AM: Canada’s Ivey PMI; at 3:00 AM: U.S. 3-year Treasury auction; and at 4:00 AM: U.S. consumer credit balances. We will closely monitor these developments alongside the various indicators to see if the current risk-on sentiment in the market persists.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed