Whether we like it or not, it appears as though crude oil is driving almost everything at the moment. It has been correlating positively with the equity markets, which makes sense because of oil’s obvious impact on the energy stocks. In forex, the likes of the CAD, NOK and RUB have all suffered big falls, which also make sense because of the fact Canada, Norway and Russia are among the oil exporting countries.
Fixed income traders have benefited from keeping an eye on crude oil these last months and this has not changed recently. On Tuesday, I forwarded the note below indicating that the front contract was nearing a channel trend line support.