- US markets out on Thanksgiving holiday
- CA Q3 2014 current account shows 8.4 billion CAD deficit, narrowest since 2008
- US initial jobless claims rises to 313K vs. 288K expected, 292K previous
- Oil prices take hits on OPEC’s refusal to cut production
Winner, winner, turkey dinner! While U.S. traders were out celebrating Thanksgiving, forex bears from around the globe were on their charts and they were hungry.
Uncle Sam didn’t release any economic reports yesterday, but traders were still on their charts as they waited for the Organization of Petroleum Exporting Countries (OPEC), which is responsible for a third of the global oil output, to decide on whether or not it will cut the group’s output ceiling.
If you recall, crude prices have fallen by 30% since June. This has prompted several members of the cartel to call for action, as they need oil prices at certain levels to support their government budgets.
After a five-hour meeting in Vienna, the group decided to maintain its output ceiling to 30 million barrels per day. The non-action, though widely expected, still managed to weigh heavily on oil prices. Brent oil dropped by more than $5 to $72.58 per barrel, while WTI crude was also sent $4.64 lower to $69.05. Yikes!
The oil-related Canadian dollar took most of the hit among the major currencies, with USD/CAD shooting up by 83 pips to 1.1333, CAD/JPY slipping by 58 pips to 103.87, and EUR/CAD rocketing by 111 pips to 1.7841.
But the bears didn’t stop at the Loonie! Commodity prices in general also took hits, which weighed on high-yielding currencies across the board and pushed low-yielders like the dollar and the yen. EUR/USD fell by 21 pips to 1.2467, GBP/USD slipped by 17 pips to 1.5742, and USD/JPY jumped by 21 pips to 117.21.
Asian session traders have a lot to watch out for today, starting with Japan’s data dump printed a few hours earlier. So far we’re seeing better-than-expected household spending, CPI, retail sales, and unemployment rate reports.
New Zealand is also set to print its ANZ business confidence report at 1:00 am GMT, followed by Australia’s private sector credit data at 1:30 am GMT. Keep an eye on these releases in case traders use them as catalysts to either extend or reverse yesterday’s price action!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!