Friday, November 14, 2014

Dollar general higher in a day with little news to move markets / Oil plunges

     Dollar general higher in a day with little news to move markets
    Gained the most vs GBP, CAD, SEK
    Stable vs NOK, CHF, EUR

     Oil plunges
    Iraq, Kurdistan reach agreement that could add to supply next year
    OPEC not likely to cut output at Nov. 27th meeting; on the contrary, it appears to be cutting prices in order to force US shale producers out of the market
    Lower oil prices are a boon to consumers but can cause difficulty for central banks owing to the impact on inflation

     US “quit rate” rises = good sign for US job market
    However Fed funds expected rate declines anyway = no support for USD

     Today:
    Eurozone: Q3 GDP data from Eurozone, Germany, France. Sluggish growth (+0.1% qoq expected) means ECB will have to continue supporting economy = EUR-negative
    UK:  Construction output for Sep forecast to rise
    US: Retail sales for Oct forecast to rise = USD-positive

    Speakers:  Coeure, Bullard, Fed Vice Chairman Fischer

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