View our guide on how to interpret the FX Dashboard.
- The Bank of Canada kept interest rates unchanged as expected, though Governor Poloz and company did offer a relatively upbeat assessment of the economy, boosting the loonie.
- US data: The ADP Employment report (Nov) came in light at just 67k new jobs vs. 135k eyed. The disappointment was slightly offset by an improvement in the employment component of the ISM Services PMI report, which came in at 55.5 vs. 53.7 last month (though the headline reading missed expectations as well at 53.9 vs. 54.5 expected).
- FX: The British pound was the strongest major currency on growing optimism that the Conservatives will be able to secure a majority at the election in less than two weeks’ time (see here and here for more). The Canadian dollar was also strong, boosted by the big surge in oil prices. The safe haven Japanese yen and Swiss franc were the day’s weakest major currencies.
- Commodities: Oil prices rocketed 4% higher after a massive drawdown in crude inventories. Gold edged lower in quiet trade.
- US indices closed higher on the day to erase most of yesterday’s losses.
- Energy (XLE) was the strongest major sector on the day; Materbials (XLB) brought up the rear.
- Stocks on the move:
- Alphabet (GOOG) rose 2% as investors digested the news that CEO Larry Page would be stepping down.
- Troubled energy firm Chesapeake Energy (CHK) surged 17% after securing a loan facility to shore up operations.
- Salesforce.com (CRM) dipped -3% after offering a disappointing go-forward outlook in its earnings call.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.