Sep 15, 2019
Forex Today: oil-related news to mess with sentiment
Here is what you need to know on Monday, September 16th:
- EUR’s rally offset by better-than-expected US data, attention shifts to the Fed announcement later this week.
- The Pound rallied on renewed hopes the UK may get a way to modify the Irish backstop, despite on Thursday, EU’s top negotiator Michel Barnier said that there are no grounds for reopening formal negotiations. Optimism was underpinned by a leaked report suggesting that the EU is prepared to grant another extension on Brexit to avoid a no-deal.
- UK PM Boris Johnson is planning to secure a deal with the EU at the EU summing in Brussels mid-October.
- US Treasury yields were firmly up. The yield on the benchmark 10-year Treasury closed the week at 1.90%, its largest weekly rally since November 2016.
- Safe-havens remained under selling pressure, with USD/JPY above 108.00 and Gold sub-1,500.00.
- During the weekend, news showed that one of the world’s largest oil facilities in Saudi Arabia was attacked by drone, and estimates indicate that it cut as much as 5mbpd of Saudi oil production. Houthi rebels claimed they were behind the attack. Such news could affect crude prices at the weekly opening.