FX Noon: Opec looming large as markets seek direction
- Thanksgiving slows down market activity
- Encouraging employment figures for Germany
- Opec conference outcome eagerly anticipated
The biggest news on the day still awaits us as far as the Opec press conference this afternoon, after the all-day meeting currently being held in Vienna. The market is looking for a binary outcome; it either announces production cuts or it doesn't. My money is on no change to production and potential for further downside in oil and weakness consequently in the CAD.
The bottom line is, if Opec were not in a rush to do anything until now, I can’t envisage anything prompting it to take action today.
Keep an eye on gold and CAD in the aftermath of the 3pm (London) press conference as they’re going to be the biggest likely movers.
I maintain the short CADCHF position but must admit will be looking for an exit closer into the weekend and the Swiss referendum.
It will remain quiet today, folks and there really isn’t too much to be made of levels in crosses today.
The AUDUSD has potential to run higher once again after initial consolidation of last night’s move, but I wouldn’t expect to see it too much higher than 0.8610/00.
The EURUSD, otherwise, will probably hover around the 1.2500 level simply waiting for someone to push it around but in the absence of market participants.
-- Edited by Kevin McIndoe
Ken Veksler is director of Accumen Management.