Markets had a relatively steady day yesterday with US equities and bonds closed for the funeral of former President George H W Bush. We did see some moves in the currencies with commodity currencies coming under pressure, the Aussie was the first to drop to lower levels as the quarterly GDP data missed on expectations and then the Cad took a big hit, taking UsdCad to fresh yearly highs after the BOC delivered a more dovish rate statement than expected. Commodities remained relatively stable with Oil holding around recent levels ahead of OPEC meetings due to start today in Vienna.
Markets remain wary of developments in the Geo-Political issues that have been influencing direction over the last year and price action suggests that investors are still sitting on the pessimistic side of the fence. We heard some positive comments from President Trump yesterday with regard to China but markets are seeking concrete deals now rather than rhetoric and news this morning that the US are looking to extradite Huawei’s CFO after she was arrested in Canada for violating US sanctions against Iran will do little to remove investor caution. Brexit is still causing a huge amount of concern to sterling traders as we move closer to the December 11th parliamentary vote, Cable is sitting just above its recent lows and it looks very vulnerable from a technical perspective if it breaks cleanly through 1.2650.
Looking ahead to today’s trading day and the focus will remain on Australia early in the Asian session with Retails Sales and Trade Balance data due out. It’s relatively quiet during the rest of the day’s trading in terms of economic releases but the Oil market will be keeping a close eye on proceedings at the OPEC meeting and expect overall investor sentiment to continue to dominate flow