U.S. Session Forex Recap – Nov. 22, 2016

  • OPEC technical talks making “some progress” ahead of Nov. 30 meeting
  • OPEC source: Still some concerns about Iran but output deal likely
  • ECB Gov Draghi: Euro zone recovery proceeding at moderate pace
  • U.K. PM May still planning on invoking Article 50 by March 2017

Crude oil and the Canadian dollar were in the limelight, thanks to positive updates from OPEC delegates after their first set of technical talks.

Major Events:

OPEC pre-game talks – OPEC experts have scheduled a two-day pow-wow ahead of the official November 30 meeting in Vienna to get a head start on discussing the technical details of the proposed output deal. According to sources, there are still some concerns about Iran at the moment but they are making “some progress” and that an agreement by the end of the month is likely.

WTI crude oil popped up to $48.76/barrel while Brent crude oil surged to $49.37/barrel. Sources reported that some members were willing to offer Iran more flexibility on production volumes, as these were the culprit for their failure to come up with a deal in their earlier gathering.

U.K. PM May’s testimony – In her latest speech, U.K. Prime Minister May reiterated that she doesn’t plan on pushing back their time frame of invoking Article 50 by March 2017, effectively setting the official Brexit date on March 2019. She also set the stage for an upbeat Autumn Forecast Statement to be delivered midweek, citing that the Chancellor will lay out an agenda that is ambitious for Britain.

In particular, May mentioned that she looks forward to seeing plans to provide a strong and stable foundation for the economy, including steps to bring the deficit down and reducing debt. She also provided some assurance for businesses, urging them to look towards new and dynamic trade agreements that will work better for the economy.

Major Market Movers:

CAD –  The Loonie continued to advance against most of its peers, buoyed by optimistic expectations for the OPEC meeting.

USD/CAD is down from 1.3460 to a low of 1.3385, CAD/JPY is up from 82.14 to a high of 82.79, EUR/CAD is down from 1.4307 to 1.4226, and AUD/CAD dropped from .9915 to .9867.

GBP   Sterling also raked in strong gains after Prime Minister May sought to restore confidence in the U.K. economy.

GBP/USD popped up from 1.2383 to 1.2500, GBP/JPY rallied from 136.91 to 138.83, EUR/GBP is down from .8587 to a low of .8490, and GBP/AUD edged close to the 1.7000 handle.

Watch Out For:

  • 7:45 am GMT: RBA Assistant Gov Kent’s testimony

See also:

London Session Recap

Asian Session Recap

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