Forex news for North American trading on November 23, 2021
- NASDAQ falls for the second consecutive day. Dow closes higher for the second consecutive day
- S&P erases losses. Knocking on the upsides door.
- Buy the fact. WTI crude oil settles at $78.50.
- Biden: Oil companies have not ramped up supply quickly enough to meet demand
- Ethereum climbs 6% as the bulls fight back
- Global covid situation: Europe continues to struggle, watch the US
- BOC's Beaudry frets about Canada housing risks and high debt
- US sells 7-year notes 1.588% vs 1.598% WI
- US expects OPEC+ to continue with easing the cuts - report
- Bank of England's Bailey: I do not think we will go back to a hard form of guidance
- Major European indices end the session with mixed results
- RBNZ to hike 25 bps later today - Credit Agricole
- BOE's Bailey: We don't regard crypto as a stability threat now but that could change
- Richmond Fed manufacturing index +11 vs +5 expected
- US November prelim Markit services PMI 57.0 vs 59.1 expected
- Who IS winning? And why knowing that is important if you want to be a better trader.
- Oil accelerates to the upside as the SPR release sputters
- Manufacturing and another Treasury auction on the US agenda
- Japan to release 'several days' worth of oil reserves
- The EUR is the strongest and the NZD is the weakest as NA trading begins
- Biden announces release of strategic petroleum reserve
The US day started with Pres. Biden announcing a coordinated release from Strategic Petroleum Reserves. China, India, Japan, Korea, UK all participated on paper at least (the amounts were minimal). For the US the announced a 50M release consisting of 32 million barrels that will be an exchange over the next several months (releasing oil that will eventually return to the SPR in the years ahead), and 18 million barrels will be an acceleration into the next several months of a sale of oil that Congress had previously authorized. The daily use is around 18M barrels a day. 50M /18M = less than 3 days of supply. Other countries share was also relatively low.
The price of crude oil traded to a low of $75.32. That was still above the low reached a few days ago at $74.75. The high price reached $78.84 and settled at $78.50, up 2.28% on the day. For other thoughts on the action today see Adam's post by clicking here.
With oil off to the side, the market focused on things like rates and the stock market. There was some economic data as well with the Markit PMI coming in at 57.0 versus 59.1 expected (demand slowed and prices remained high). The Richmond Fed index was better, however, at 11 versus 5 estimate.
In the US debt market, yields at the backend of the yield curve closing the day higher with the 10 up 5.4 basis points and the 30 year up 5.7 basis points. Two year yields did come off however as traders took some profit after the yield peaked at a cycle high of 0.687% (highest yield since March 2020).
The higher yields helped to push the NASDAQ index lower. The index traded down over 1% on the day and if it stay down that low would been the first back to back 1% declines for the index since March. That was not to be as lovely day rally took the toward its middle of the range at -79.61 points or -0.50%. Both the S&P and Dow industrial average did close higher. The S&P is 1% from its all-time high. The NASDAQ index which made a new all-time high just yesterday, is 3% from that level. European shares were mixed today.
The table below shows the highs, and lows and changes from a price and percentage basis for the major US Europeans stock indices today.
In the forex market, the CAD is going out as the strongest of the major currencies helped by the rebound in crude oil. The JPY was the weakest of the majors. The USD is ending the day thoroughly mixed with an equal amount of gains vs the losses. The greenback rose modestly verse the GBP, JOY, CHF and NZD and fell modestly vs the CAD, EUR and AUD. The biggest gainer was vs the JPY at 0.23%. The largest decliner was vs the CAD (-0.28%).
