Article / 10 October 2016 at 22:12 GMT

US Market Wrap: Putin pledges Russian cooperation with Opec

FX Consultant / IFXA Ltd


  • Japan: Current Account and Trade Balance 2350 GMT 

US Data released: 

  • No data released – Columbus Day 

It was a ‘black gold gusher”, a “Texas tea party” for oil traders today. Russia announced that it is willing to join in Opec’s effort to stabilise the market at a meeting in Istanbul.

According to Reuters, Russian President Vladimir Putin said that a production freeze or even a production cut were likely the only right decisions to maintain energy sector stability. Algeria called for other non-Opec nations to make similar commitments. Oil prices soared.

WTI started the New York session at $49.54 and rose to $51.58 before slipping back to $51.20 at the close. USDCAD dropped from 1.3268 to 1.3138.

Monday was Columbus Day, a holiday to honour an Italian-born, Spanish-funded explorer who got lost in his search for India and landed in North America. FX traders, at least those who had to work, weren’t lost today. They were determined to buy US dollars, and buy them they did, at least against sterling, euro, Swiss and yen.  

That may be because traders believe that, although Friday’s non-farm payrolls report was weaker than expected, it was not weak enough to prevent a December rate hike.

The Canadian dollar and Australian dollar rose while NZDUSD was virtually unchanged.

US bond markets were closed but that wasn’t the case for stock markets. US equity markets were open and the major indices ended higher on the day.

Donald Trump’s presidential ambitions took another turn for the worse when Republican House Speaker Paul Ryan told colleagues that he wouldn’t defend or campaign with Trump.

 Russian President Vladimir Putin said that a production freeze or even a production cut were likely the only right decisions to maintain energy sector stability. Photo: iStock

Check out Saxo Bank’s Head of Commodity Strategy, Ole Hansen’s review of the Commitments of Traders report in: COT: Big shift from precious metals to energy — #SaxoStrats

– Edited by Susan McDonald

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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