Rising Geopolitical Tension Casts Shadow On U.S. GDP
The National Bank of Canada | Nov 25, 2015 08:30AM ET
Rising tensions
Geopolitics came to the forefront yesterday, casting a shadow over the highly respectable U.S. GDP results (+2.1%) posted earlier in the day. Fears of a conflict in the Middle East naturally had the most repercussions, sending crude oil prices skyrocketing, up 3.8% by the end of the session. Commodities on the whole saw rising prices, helping drag the greenback down against most major currencies. The loonie proved no exception, with the USD giving up close to a cent to its neighbour to the north, which represents an opportunity for buyers.
This morning however, a relative calm appears to be dominating on markets, showing that financial news and developments that guide the various monetary policies have more of an impact on movements. The euro is also under pressure, further to the announcement that eurozone officials had discussed imposing new penalties on banks depositing funds with the ECB.
On the indicator front, the United States will go out with a bang before taking tomorrow off for Thanksgiving, with a wealth of data points, including Personal Income and Personal Spending as well as Initial Jobless Claims.
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