EncoreFX’s daily market updates are written by our experienced and professional dealing team.
USD Spikes on Fed Comments; Oil Continues to Slide
Published November 29, 2017
USD is stronger this morning after Fed Chair Yellen stated that strength in the US economy will warrant continued interest rate hikes, though she did not speak to the timing.
US tax reform has cleared another hurdle after Senate Republicans moved their bill through a partisan committee vote, which sets up a full vote by the Senate as early as tomorrow. There remains some GOP Senators that have yet to lend their support to the bill, but this is still being viewed as a positive step.
North Korea launched another missile which it claims can reach the US mainland. The missile is reported to have flown 50 minutes and landed off the coast of Japan.
Crude oil prices continue to fall again this morning; the American Petroleum Institute reported after yesterday’s close that US oil inventories increased by 1.8 million barrels versus an expected decline of 3.1 million barrels last week.
Also weighing on oil are the ongoing doubts about the outcome of the OPEC meeting in Vienna which concludes tomorrow. Expectations were for the production pact to be extended, possibly until the end of 2018, but Russia has been sending mixed signals about whether it will continue to be on board. WTI crude is down 0.29% to $57.82 with Brent crude down 0.19% to $63.49 at the time of writing.