Markets still seem to be in snooze mode as Chinese markets are closed for the entire week while U.S. banks are also closed for the President’s Day holiday.
Even so, the Loonie caught a bid from OPEC official Barkindo’s remarks while the euro and pound crawled lower.
- Euro zone current account surplus narrowed from 35B EUR to 29.9B EUR
- OPEC official Barkindo: Global oil demand to rise by 1.6 billion bpd this year
- OPEC conformity up 133% in January 2018
- Next OPEC meeting scheduled in June
- BOE Governor Carney’s testimony pushed back later
Remarks from OPEC’s Barkindo
The Secretary General of the crude oil mafia had a few words to say on the cartel’s compliance and global oil demand forecasts, leading to a bit of action for the commodity and the correlated Loonie.
Mohammad Barkindo noted that the OPEC has registered 133% conformity to its output agreement in January this year, up from a pretty decent 107% figure in 2017.
He added that global oil demand could pick up by 1.6 million barrels per day this year due to an “encouraging environment.” However, he also reminded that the next meeting between OPEC and non-OPEC oil producers is scheduled in June.
Resurfacing Brexit jitters?
U.K. Prime Minister May’s spokesperson reiterated that Brits still want to keep a post-Brexit partnership with the EU as ministers continue to lay out their plans for a potential deal.
But instead of spurring some support for the pound, the British currency found itself as one of the weaker performers for the session as traders probably worried that details aren’t being set in stone even though the referendum was held more than a year ago.
It didn’t help that BOE Governor Carney’s speech at Regents University in London was pushed back from its original schedule to 6:45 pm GMT today.
European equities close lower
After a positive start, European stocks gave back their intraday gains to end slightly in the red.
- German DAX is down 40.77 points to 12,410.70 (-0.33%)
- French CAC 40 is down 14.08 points to 5,267.50 (-0.27%)
- Euro Stoxx 50 is down 12.34 points to 3,415.50 (-0.36%)
- FTSE 100 is down 23.20 points to 7,276.00 (-0.25%)
Gold is also in negative territory while crude oil was able to score some gains after Barkindo’s optimistic remarks.
Major Market Mover(s):
The pound slumped against most of its rivals as Brexit concerns are revisiting the headlines.
GBP/AUD is down 50 pips to 1.7694 (-0.28%), GBP/CHF is down to 1.2993 (-0.15%), GBP/USD slid back to the 1.4000 handle (-0.14%), and GBP/NZD is down to 1.8986 (-0.03%)
The yen also chalked up losses against most of its counterparts, even as a bit of risk aversion peeked back in the markets.
AUD/JPY is up to 84.33 (+0.45%), USD/JPY is up to 106.52 (+0.31%), CHF/JPY is up to 114.82 (+0.28%), and EUR/JPY is up to 132.18 (+0.25%)
Watch Out For:
- U.S. banks closed in celebration of President’s Day
- 7:45 am GMT: BOE Governor Carney’s testimony
- 9:45 am GMT: New Zealand quarterly PPI input and output prices