This Monday heralds in a short week and a light one on the data front. After a quick judgment by the markets that Donald Trump’s election will be conducive to dollar strength, we’ve seen ten days of the U.S. dollar rising against the euro. It looks likely, however, for the euro to snap its ten-day losing streak against the U.S. dollar today, as the greenback gives back some gains against major currencies.
A major development in the euro/dollar story is that Angela Merkel has confirmed that she will be running for a fourth term as the Chancellor of Germany. An environment of uncertainty pervades in the Eurozone because of the Brexit vote, and the possibility of her continuing on seems to be a boon to the euro today.
Crude oil futures have rebounded strongly this morning from their recent pullback, as traders cheer a seemingly positive development towards capping crude production. Iraq and Iran are talking up a possible agreement to cut production at an OPEC meeting next week, and Russia has no qualms with freezing their own production. Crude futures have risen over 2.5% to $47.63/barrel at the time of this writing.
EUR/USD: The euro is getting a lift on Chancellor Merkel running for a fourth term, as well as from U.S. dollar weakness against major currencies.
GBP/USD: Pound has seen a significant rise today, up the most against the dollar among major currencies. The U.K. Chancellor of the Exchequer Philip Hammond is giving the first official outlook from the U.K. government on Wednesday, so it might be a surprisingly busy week for sterling traders.
AUD/USD: Aussie dollar has reclaimed some losses against the dollar this morning on broad dollar weakness.
USD/CAD: Canadian dollar is gaining ground against its U.S. counterpart on renewed optimism for a future rebound in oil prices.