Forex news for November 28, 2016 in North American trading:
- OPEC experts did not agree on details of new deal
- Iran oil minister says OPEC will be successful if not managed by political rivalries
- Iran and Iraq still have reservations on output cut - BBG
- CFTC Commitments of Traders: Yen bets still on, but not many
- BOC's Poloz: Have seen some weakness lately but it was expected
- There's no absolute limit on inflation overshooting - BOE's Vlieghe
- BOE's Vlieghe: Keeping rates on hold is best for returning inflation to target
- ECB bond buying was the slowest last week since September as big decision nears
- Geopolitical uncertainty is going to be the main source of uncertainty in the months ahead says Draghi
- Rock-bottom rates in Israel says something larger about inflation
- Draghi: The global economy is expected to continue its recovery
- Iraq says it will co-operate with OPEC members to reach an agreement acceptable to all
Markets:
- Gold up $9 to $1193
- WTI crude up 83-cents to $46.89
- S&P 500 down 12 points to 2201
- US 10-year yields down 4.5 bps to 2.31%
- JPY leads, GBP lags
The oil market liked the early comment from Iraq touting cooperation and largely brushed off the other sigs of discontent as the regular grandstanding ahead of a deal. WTI had been as low as $45.65 at the start of US trading but it jumped on the Iran headline and continued to $47.50 before finishing at $46.94. Expect dozens more OPEC headlines in the day ahead.
The oil trade naturally spilled over into CAD and USD/CAD sank down to 1.3397 at the lows from 1.3500 early. Stops were hit on the break of 1.3450 in a quick move lower and the pair made a few half-hearted attempts at a recovery but they never grabbed more than 30 pips.
The US dollar was generally solid but not against the yen. It fell early in a quick move down to 112.10 from 112.70. It had been much lower in Asia-Pacific trading but was riding some upward momentum as New York trade began. Will the heavy sellers in Tokyo return today? Japanese jobs and retail sales data are on the docket.
The pound was the laggard for the first time in awhile. It wasn't anything beyond the usual Brexit worries. In large part, flows dominated today and the theme was retracement. Cable sank down to 1.2400 from 1.2500 with most of the move happening in the first 90 minutes of US trade.
EUR/USD bottomed out at 1.0564 in the first hour of US trade and then chopped between there and 1.0610, where it finished.
