Daily Alert: Tuesday 25th October 2016

Mark NugentDaily Alert, Oct 2016

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Forex Analysis for Tuesday 25th October 2016
Economic Calendar

Monday:

Iraq’s Oil Minister Jabar Ali Al-Luaibi said that Iraq should be exempted from cutting production amid fighting a war with ISIS. Saudi Arabia oil Minister Al-Falih stated that oil markets are on path of rebalancing after meeting with Russian Energy Minister Novak and representatives from other GCC nations. (Zerohedge).

CAD stole the limelight amid a backdrop of comments from BoC Gov. Poloz in parliament, in which he stated that “fiscal stimulus eases pressure for lower rates” and that the “best plan is to wait 18-months”, which saw CAD strengthen by over a point against the greenback, with the move exacerbated as USD/CAD tripped stops below 1.3300. However, the majority of the move was later pared after Poloz clarified that the comment regarding the best plan of waiting 18-months was in reference to the output gap and not monetary policy. (Zerohedge).

ECB’s Nowotny (Neutral) has stated that asset scarcity is a concern in regards to QE (Zerohedge).

RBNZ is to begin publishing forecasts for OCR rate vs. current forecast of 90-day bill rate, in order to provide greater transparency in regards to monetary policy and will be first implemented at the Nov 10th meeting. (Zerohedge).

Market Reaction

Equities up all around the world except the UK. Oil holds continues at USD50/barrel. The USD hits 7 month highs. The JPY weakens sightly and recent GBP movement is beginning to look like a slight upwards triangle.

Media

Britons happy to sacrifice trade for fewer foreigners poll says
Euro gripes threaten economic recovery as populism advances

Today

BoE Gov Carney due to testify about the economic consequences of the Brexit Vote before the House of Lords Economic Affairs Committee in London. ECB President Draghi due to speak about stability, equity, and monetary policy at the German Institute for Economic Research, in Berlin.

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