It was a pretty quiet New York trading session as most market participants were busy prepping for Thanksgiving festivities. That didn’t stop the Loonie and the pound for making a few moves, though.
- U.K. YouGov/CERB consumer confidence index slumped from 109.3 to 106.6
- U.K. CBI realized sales jumped from -36 to +26 vs. +5 consensus
- Canadian headline retail sales up 0.1% vs. 0.9% forecast
- Canadian core retail sales up 0.3% vs. 0.9% forecast
- New Zealand trade deficit at 870M NZD vs. 750M NZD forecast
- SNB head Jordan: High Swiss current account balance has consequences
- U.S. on Thanksgiving Day holiday
U.K. consumer confidence at post-Brexit low
According to a survey conducted by YouGov and the Centre for Economics and Business Research, consumer confidence in the U.K. slumped from 109.3 in October to 106.6 in November, marking its lowest level since the Brexit vote.
Components of the report revealed that all sub-indices weakened, particularly that of household finances which hit its lowest level since January 2014. Analysts remarked that this was likely due to the recent increase in borrowing costs and the slowdown in the housing market.
Downbeat Canadian retail sales
So much for expecting a strong rebound in consumer spending! Canada’s September retail sales figures failed to hit their marks, underscoring the view that the BOC won’t be in a rush to hike again.
Headline retail sales posted a meager 0.1% uptick versus the estimated 0.9% increase while the core version showed a 0.3% gain. Underlying data indicated that the gains were driven by higher gasoline prices.
On a less downbeat note, the previous period’s figures enjoyed upward revisions from a 0.3% decline in headline retail sales to just 0.1% and a 0.7% drop in core retail sales to just 0.4%.
Crude oil surges again
Another day, another set of gains for Black Crack! Crude oil carried on with its climb on the closure of a major pipeline from Canada to the United States.
As it turned out, this shutdown helped curb stockpiles in the storage hub of Cushing, Oklahoma for the past week and could continue to keep supply in check for the coming days.
- WTI crude oil advanced to $58.38 per barrel
- Brent crude oil is up to $63.38 per barrel
Market analysts also attribute part of the gains to optimism ahead of the OPEC pow-wow next week, during which the cartel could officially announce a decision to extend its output deal.
Major Market Mover(s):
The Loonie had been drawing some support from crude oil gains over the past few days but wound up returning some wins on downbeat retail sales data.
USD/CAD dipped to a low of 1.2673 then popped back up to 1.2717, CAD/JPY hit resistance at 87.75 then tumbled back to 87.40, EUR/CAD is up to 1.5065, and CAD/CHF slipped to .7720.
The pound pushed through with its slide from earlier in the day as weakening consumer confidence on account of the BOE hike and Brexit jitters dragged the currency down.
EUR/GBP rallied up to the .8900 mark, GBP/JPY slumped from a high of 148.24 to a low of 147.85, GBP/NZD slid to the 1.9300 level, and GBP/USD is down to 1.3301.
Watch Out For:
- 7:30 pm GMT: Japanese flash manufacturing PMI (fall from 52.8 to 52.6 expected)