Posted on: 08 December 2015, by: Pepperstone Support, category: Market Review
Disappointment seems to be a big market theme these days and the spillover has hit into oil markets on the back of the less than optimal OPEC meeting this past Friday. Brent down to 40.60 and WTI taking out the years lows to test 37.50, the latter touching levels that haven’t been seen since 2009. The lack of policy cohesion within OPEC on the topic of supply has many traders wondering where and how the bottom will come.
NOK and CAD were the big losers today because of the elevator down price action in energy. Losses in oil kicked off selling in other commodities, base and precious metals included. The move lower in metals as well as a massive move lower in iron ore took AUD and NZD down in sympathy, undoing the steady bid in the two currencies over the last week or so.
USDCAD traded strongly, finally eliminating tough resistance in the mid 1.3450 area to close near 1.35. Sell side analysts have suggested that the chart looks ripe for a move to 1.40.
EM was also sold broadly against the dollar, with MXN and the Chilean peso hit along with its fellow commodity producers.