Talking Points:

• Canadian Dollar, Norwegian Krone rise alongside crude oil prices
• WTI hit 17-month high as non-OPEC suppliers sign on to output cut
• British Pound strength set to be challenged by Hammond testimony

The Canadian Dollar and the Norwegian Krone outperformed in overnight trade, bolstered surging crude oil prices. The WTI benchmark shot up to the highest level in 17 months after a number of large non-OPEC producers agreed to participate in an OPEC-led output cut scheme at a meeting over the weekend.

The British Pound edged narrowly higher as UK Chancellor of the Exchequer Philip Hammond prepares to testify about last month’s Autumn Statement budget update before a House of Commons committee. The likely severity of any Brexit-linked slowdown and the fiscal help on offer to counter it will be in focus.

Sterling’s gains presumably imply that investors foresee a boost in government spending as likely to reduce the scope for further easing on the monetary side of the equation. Mr Hammond will surely try to put on a brave face. The degree to which this looks convincing may test such this rosy outlook. 

Asia Session

European Session

Critical Levels