Market Analysis by Junaid Wilson
Yesterday we saw commodity currencies fall across the board, the CAD made new highs vs. the USD on the back of weaker oil. OPEC choose not to cut back supply after their meeting on Friday.
It was also a light day on economic calendar with the only notable data realise being industrial production from Germany. Goods production in October saw its first increase since July but a modest 0.2 percent monthly gain was still comfortably short of expectations. Annual growth dropped a couple of ticks to a minimal 0.1%.
Today’s figures put overall industrial production 0.8 percent below its average level in the third quarter when it decreased 0.3 percent versus April-June. However, October’s manufacturing orders were up a monthly 1.8 percent and the most recent business surveys have been relatively upbeat. As such the rest of the quarter should see some improvement.
Today we have the second 3rd GDP estimate out of the Euro zone expected to come in at 0.3% which is already priced into the market. Later in the US session we have the NIESR UK GDP estimate.
We expect the USD to stay strong vs all major and the commodity block ahead of the FOMC meeting next week.