Yesterday’s meeting regarding the stabilization of oil prices between ministers from Saudi Arabia, Russia, Qatar and Venezuela ended in disappointment for the markets as the nations agreed in principal to freeze output at January levels instead of cutting oil production. Oil prices were up nearly 6% as the meeting was announced, though ended the day 1.4% lower spurring USDCAD to initially fall 1%, yet finish the day marginally higher. Elsewhere, the Pound was the biggest loser amongst the majors yesterday, as inflation data came in as expected while the housing price index, core CPI and retail price index all came in below expectations, causing GBPUSD to fall by 1.3% from its highs. The busy economic calendar continues today with the UK expected to release employment and earnings data. The UK’s economy continues to produce jobs at a remarkable rate, evidenced by the falling unemployment rate, though earnings remain a laggard. During the North American session, the US is expected to announce building permits, producer price index and industrial production figures. Also on the agenda will be the release of the FOMC meeting minutes from the FED’s last meeting, which is expected to show a more cautionary sentiment amongst FOMC members. Lastly, during the overnight session, Australia is expected to publish employment data. |
