WTI oil continued its collapse to 12-year lows this morning, one day after falling by nearly 5%, to open today’s trading day down 2.5% at the time of writing. This comes despite headlines out this morning from Nigerian oil minister stating that OPEC will hold an emergency meeting in case oil prices fall below $30. Spot prices, which are down over 18% in January alone, have taken its toll on the Canadian Loonie, with USDCAD now having breached 1.4250 - a high not seen since April of 2003. Meanwhile, the FED’s Kaplan (non-voter, dove) stated yesterday that there will be insufficient incoming data before January’s meeting to lean towards a rate-hike, though the meeting in March will be live. The UK will kick off the economic release calendar with today’s publication of manufacturing and industrial production figures. A weakening sterling may boost exports and manufacturers slightly, though industrial production should remain under pressure as oil and gas exploration in the North Sea continue to weaken as energy prices are getting hammered. Next, the US is scheduled to publish job opening stats, which continue to have an upward trajectory since the end of 2009. Lastly, there are numerous central bankers speaking today; Bank of Japan Governor Kuroda is due to speak in Paris on a speech titled “Monetary Policy, Financial Stability, and the Zero Lower Bound”, shortly followed by FED Member Fischer and ECB executive board member Peter Praet, while Bank of England Governor Carney is scheduled to speak later this afternoon, also in Paris, on a speech titled “Legacy for Business Models and Financial Stability”. |
