Forex Analysis for Thursday 29th September 2016
Wednesday saw a surprise move, OPEC agreed on a production cap. First such deal in 8 years. Iran, Libya and Nigeria are exempt from the agreement. Details to be agreed and presented at next OPEC meeting on 30th November as a step en route to a wider deal. Energy stocks in S&P500 up 4%. WTI prices rises around $2/barrel to $47/barrel.
No news on Draghi’s visit to the Bundestag. I hope he’s alright.
Equity markets are cheered by the OPEC decision. Oil up around 4%. Risk sentiment takes a step towards “on” and capital flows from the JPY causing weakness and USDJPY breaks through 101. CAD jumps on oil news.
It’s all about the oil sort-of-production-cap.
Today sees Final GDP in the US and talking opportunities for Yellen (Chair of Fed) and Kuroda (Governor of BoJ) who have been speaking a lot recently without troubling the financial media too much.
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