Oil rises to a seven-week high

<p>Oil is having itself a strong day on worries that Iran may be pulled into a Middle Eastern war and with the Red Sea closure looking like a real quagmire.</p><p>In addition, oil is getting a tailwind from strong US GDP data and hopes for better Chinese growth.</p><p>Technically, the break above the December high is undoubteldy positive and clears the way for another test of $80.</p><p>CAD's sensitivity to oil right now is very low but the bond market could begin to flash some warning signs above $80 as that will begin to filter into Feb/March inflation numbers; something that would keep central bankers on hold longer.</p>

This article was written by Adam Button at www.forexlive.com.