FX Daily Update
The National Bank of Canada | Oct 26, 2016 09:04AM ET
Russians say “Nyet” to oil output cut!
The perspective of a key rate increase from the U.S. Federal Reserve (Fed) as soon as December is favourable to the U.S. dollar, which has gained ground in October against all G10 currencies. The pound sterling is down 6% so far in October and 18% since the Brexit vote held on June 23.
It is worth remembering that financial markets had a rough time after the key rate increase in December 2015. The forecast for several bellwether rate increases in 2016 from the Fed weighed down the price of crude oil, stock markets and currencies from emerging nations. Between December 16, 2015 and February 11, 2016, the S&P500 dropped more than 10% while there was a 30% plunge in oil prices (WTI).
This morning, WTI is down 2% as Russia is now saying openly that an oil production cut is not foreseeable. This is weighing down our dollar, which is losing ground against the euro and the greenback. Today, we’ll be keeping an eye on U.S. Crude Oil Inventories at 10:30. A great deal of volatility can therefore be expected this morning.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.