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27 Nov 2014
US Session: Holidays or no holidays, greenback prevails and Oil dumps
FXStreet (Guatemala) - The US were out today for Thanksgiving celebrations, but it seemed that there were a few desks that had been lurking about with the Turkey on hold, especially around the late European trade, with some squaring up to do and were in for the action around OPEC.
OPEC left their production quota at 30 million barrels a day and this sent the price of crude oil falling as low as $71.23 from $76.61 highs while WTI dropped as low as $67.73 from $72.91 highs. Commodity currencies all took a hit also, especially the Canadian dollar and there were ricochets throughout the currency board and also into precious metals, where the yellow metal fell as low as $1,186.60 spot. The greenback prevailed into a calmer afternoon of the US trading time zone.
USD/CAD made highs at key resistance on the 1.13 handle to 1.1355 the high, so far, on the back of the OPEC news and through here would indicate a bullish signal breaking the short term descending channel’s resistance line.
USD/JPY broke up through the short term channel’s resistance line of its own to meet and consolidate over 60 pips higher on the day in the 117.80’s against growing speculation that the Yen has been sold off far enough ahead of the forthcoming snap elections in December. Meanwhile, we await an array of data releases soon to come from Japan and these may instil life back into the sleeping giant in Asian trade.
AUD/USD was settled on the lows of 0.8545 in consolidation of the supply from above the 0.86 handle in early London and after it was stepped on again on OPEC at 0.8580 to the lows and bringing in the critical support area once again before the week and month is out.
EUR/USD was left on the side-lines post the European session events and OPEC which left markets anticipating a no change of action from the ECB next month after listening to Draghi’s comments before the Finnish Parliament, coupled with a bleak outlook in respect of Germanys inflationary data coming in weaker month on month and in line year on year. With the price of oil also declining further, these factors are forcing some to speculative that the ECB will downgrade their inflation forecasts even further for the next quarter and risks therefore lay ahead on the ECB’s meeting next month and subsequent press conference.
OPEC left their production quota at 30 million barrels a day and this sent the price of crude oil falling as low as $71.23 from $76.61 highs while WTI dropped as low as $67.73 from $72.91 highs. Commodity currencies all took a hit also, especially the Canadian dollar and there were ricochets throughout the currency board and also into precious metals, where the yellow metal fell as low as $1,186.60 spot. The greenback prevailed into a calmer afternoon of the US trading time zone.
USD/CAD made highs at key resistance on the 1.13 handle to 1.1355 the high, so far, on the back of the OPEC news and through here would indicate a bullish signal breaking the short term descending channel’s resistance line.
USD/JPY broke up through the short term channel’s resistance line of its own to meet and consolidate over 60 pips higher on the day in the 117.80’s against growing speculation that the Yen has been sold off far enough ahead of the forthcoming snap elections in December. Meanwhile, we await an array of data releases soon to come from Japan and these may instil life back into the sleeping giant in Asian trade.
AUD/USD was settled on the lows of 0.8545 in consolidation of the supply from above the 0.86 handle in early London and after it was stepped on again on OPEC at 0.8580 to the lows and bringing in the critical support area once again before the week and month is out.
EUR/USD was left on the side-lines post the European session events and OPEC which left markets anticipating a no change of action from the ECB next month after listening to Draghi’s comments before the Finnish Parliament, coupled with a bleak outlook in respect of Germanys inflationary data coming in weaker month on month and in line year on year. With the price of oil also declining further, these factors are forcing some to speculative that the ECB will downgrade their inflation forecasts even further for the next quarter and risks therefore lay ahead on the ECB’s meeting next month and subsequent press conference.