Talk about putting a surprise wrench in the system. I have been fairly bearish on WTIUSD - Oil. I went short just before the meeting and got out just two days ago. I was looking to go short oil again. However, oil and CAD move in lock-step, and there is a very strong correlation between interest rates and oil prices. Now that the Bank of Canada is raising interest rates, although I am still bearish on oil, I am going to have to wait to go short again.
CAD will continue to rally, especially against some of the other majors such as EUR and GBP. This move takes CAD out of its deep slumber with the potential to really move. Long term, I see the DXY, US Dollar Index, heading lower. This is a very small part of that, EUR being a major part of that.
This is a new shift in the FX markets.
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This will push oil higher.
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Added short oil link, am looking to go long oil for small gain to $47.50