Today’s session saw significantly lower volatility, especially on the Wall Street, which is related with US holiday of Columbus day. Despite the holiday, markets in the US worked as usual. On the other hand Canadians had Thanksgiving Day and Japaneses had a Health and Sport day, which was also a free day for markets.
Major indices in the US are traded rather flat towards the end of the session. However, we can expect more volatility later this week, due to corporate earnings reports, especially from banks such as Bank of America and Wells Fargo.
There were no economic releases to speak of, with two Fed members (Lockhart and Evans) speaking providing the only opportunity for further information on a possible US rate hike this year. However both closely repeated previous speeches rendering them a non event.
The largest significant mover today was WTI giving up some of last weeks gains, due to release of latest OPEC oil market report for September. The report showed the record output from OPEC countries for about 3 years. Surprisingly, an increase of oil production came not from Saudi Arabia, but from Iraq, Algeria and UAE. On the other hand, OPEC pointed in the report a rising demand in the following year and adjusting supply, mainly from the US. At the end of US session WTI falls by above 5,0% and the price is struggling slightly above 47,00 USD.
The USDTRY opened with bulish gap today, due to terrorist attacks during the weekend. At least 97 people have been killed, 246 injured by two explosions near Ankara’s main train station early Saturday, where the Confederation of Public Sector Trades Unions (KESK) and other labor unions were planning to hold a “Labor, peace, democracy” rally at Sıhhiye Square to call for an end to the renewed conflict between the terrorist organization PKK and the Turkish state. Turkish government officials said the blast outside the main train station in the capital Ankara on Saturday was a terrorist attack. At the end of the session USDTRY is about 300 pips lower than in the morning.