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NOK, CAD Losses Accelerate on Flatter Oil Curve

FOREX
  • Slippage in oil prices providing a considerable headwind for NOK, CAD in recent trade, with USD/NOK now through the Thursday/Friday highs and USD/CAD breaking back above 1.2550.
  • Front-month oil prices are sharply lower, with the rolling lockdowns across Shanghai sapping perceived Chinese demand, but curve backwardation is also flattening out after the steepening noted throughout last week's trade - an indication that markets could be pricing in lower demand going forward.
  • Next key level for USD/NOK rests at the 8.7742 200-dma, with USD/CAD eyeing 1.2614 (also the 200-dma).
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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