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The euro remained under pressure heading into the weekend as traders continued to disseminate the outcome of last Thursday’s ECB Meeting with Mario Draghi’s dovish comments that the ECB would be active in the market for a long time to come not helping the cause. Also placing pressure on the downside were the ECB’s projected inflation figures, expected to be at 1.7% in 2019, well below the 2% target. Elsewhere, the dollar was underpinned by the much better than expected Michigan Consumer Sentiment index however, Sterling seems to be sitting comfortably on the dollar first thing this morning.
Oil price surging
The oil price is surging this morning after energy producers hammered out a historic deal to cut output over the weekend. A group of 11 countries who are not part of the Opec cartel collectively agreed to cut output by 558,000 barrels per day from 1 January 2017. Whilst this is a massive coup for the oil market, many experts believe that prices may not rise much higher because America’s shale industry has not promised to make any cuts.
Little in terms of data today
Whilst there is very little in terms of data today, the week ahead should provide much excitement as the Fed meet on Wednesday. With an interest rate hike almost a certainty, all eyes will be on the Fed’s growth outlook, which will provide further hints as to the chances of any further rate hikes in 2017. The BOE are also meeting on Thursday to discuss their own interest rates but nothing is expected to be done.
