- Canadian foreign securities purchases up from 11.41B to 15.94B CAD
- U.S. NAHB housing market index steady at 58
- U.K. Chancellor Osborne warns of Brexit dangers
- Kuwait oil workers on strike, production down
Weekend gaps were quickly filled when crude oil prices rebounded and boosted commodity currencies, forcing the Greenback and yen to retreat.
Crude oil rebound – Even though the world’s top oil producers failed to come up with an output freeze deal during their Doha meeting, news of a strike among oil workers in Kuwait managed to ease concerns about a supply glut. As it turns out, thousands of employees in the country’s oil industry are protesting against the government’s plans to cut wages and benefits.
This open-ended strike caused Kuwait’s oil production to fall from roughly 3 million barrels per day to just 1.1 million barrels per day. WTI crude oil climbed from around $38/barrel to $39.91/barrel while Brent crude oil recovered from $41/barrel to $42.93/barrel.
U.K. Chancellor Osborne against Brexit – With the EU referendum just a couple of months away, U.K. officials have been more vocal about their Brexit concerns. According to U.K. Chancellor George Osborne, exiting the European Union could leave permanent damage to the U.K. economy.
Osborne mentioned that it would be more costly for the government to provide public services and that trade and business investment could decline. So far, polls are showing a tight race between those voting to stay and those voting to leave the EU.
Major Currency Movers:
USD & JPY– The lower-yielding dollar and yen reversed their course in the New York trading session, filling the gaps made over the weekend.
USD/JPY bounced off support near the 108.00 handle to 109.15, EUR/USD dipped to a low of 1.1274 then rallied to a high of 1.1330, AUD/USD found support at .7650 and is up to .7766, and USD/CAD is back down to 1.2775.
EUR/JPY popped back above the 123.00 handle to a high of 123.41, AUD/JPY surged from 82.50 to a high of 84.74, and CAD/JPY bounced from a low of 83.12 to land back above 85.00.
GBP – The pound was mostly higher across the board, as the U.K. currency was buoyed by anti-Brexit remarks from Chancellor Osborne.
GBP/USD rallied from the 1.4160 area to test the 1.4300 handle, GBP/JPY zoomed up by nearly 300 pips from 153.20 to 155.75, EUR/GBP is testing support at the .7900 handle, and GBP/AUD is steady around 1.8400.
Watch Out For:
- 1:30 am GMT: RBA meeting minutes (Review their policy decision here!)
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!