Forexlive
USD/VEN volatility spikes on Maduro political crisis, oil markets react
The USD has strengthened against commodity-linked currencies following reports of Venezuelan President Maduro's capture, with oil volatility impacting forex markets. WTI crude initially spiked 2.3% to $73.50/barrel before paring gains as traders assessed the complex implications. Scotiabank analysts describe the situation as 'mixed' for oil markets, noting potential supply disruptions from Venezuela's 750,000 bpd output could be offset by increased production elsewhere. The Canadian dollar weakened 0.4% against USD to 1.4350, while other petro-currencies showed similar pressure. Energy sector equities displayed divergent reactions, with integrated oil majors gaining while refiners faced uncertainty. Technical indicators suggest USD/CAD faces resistance at 1.4400, with support at 1.4300. Traders should monitor developments closely as geopolitical uncertainty typically drives safe-haven flows to USD, potentially pressuring commodity currencies further in the near term.
USDCAD
Sentiment:
Positive
Source: Finnhub