Posted on: 24 November 2015, by: Sheldon Chapman, category: Market Review
A new week starts and we’re continuing to have very uninspired price action in FX despite some interesting fundamental drivers. EURUSD did drift below 1.06 in spite of the overwhelming solid Markit PMI’s, but the break was brief and we settled near 1.0630 in NY trade.
Saudi Arabia kicked the WTI market into gear with a few headlines that gave oil a quick $2 move to the upside into 42.55. USDCAD sold off on the back of this, with the key OPEC member saying that they “will cooperate with all oil producers and exporters” to preserve stability in energy markets. This was taken as resoundingly positive for WTI prices by the market and the 40 level will be looked at as a key area of support as a result of the rally from 40.50 on the back of the Saudi headline. USDCAD has closed well off its highs, settling near 1.3365 on the day. Traders eye 1.3280 as a key area to hold if the recent uptrend is to continue uncorrected.
Aussie looks sore on the crosses and against the USD and fresh lows in copper has not been supportive in any capacity. EM FX and AUD drifted to fresh lows on the back of the 4443.50 print in copper, but lackluster momentum allowed for prices to recover a bit as NY closed up shop. We await Glenn Stevens and his speech to move AUD out of its recent .7240/.7150 range
Tomorrow we have the release of the second revision to Q3 US GDP and it’s expected to rise to 1.9% from the late October number of 1.5%