Oil crashes most since June.

Yesterday was a negative day for the financial markets and stocks; oil crashed hand in hand. The WTI benchmark lost circa 6% and the Brent oil +- the same. 

Concerns about waning Chinese demand sparked the drop. Only four of ten Asian refiners surveyed by Bloomberg said they would try to buy more Saudi Arabian crude after the kingdom cut pricing for October as consumption remained below pre-virus levels. 

Abu Dhabi National Oil Co. also cut prices on Tuesday, the latest response to a sluggish demand backdrop in the world’s biggest oil-consuming region.

Demand is weak and is far below the V-shape recovery optimistic expectations. The same goes for everything cyclical - such as cars, flights, cruises, or commodities. 

Stocks tanked again, and the extreme positioning needs to be unwound before the markets can continue higher. The Nasdaq is down 11% from its all-time highs and has entered correction territory. 

In the FX, the greenback is starting to accelerate as risk-off flows are supporting the reserve currency. The EURUSD pair has dropped below 1.18, and the euro also dropped below the uptrend line from August' lows, which could mean the bullish trend is over for now. 

Later in the day, the Bank of Canada is deciding about monetary policy and the decision should sound dovish, which will influence the Canadian dollar. 
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