ForexLive Asia FX news: Oil jumps, CAD "me too!"

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Monday 15 May 2017


China data:



Oil jumped today on reports from Saudi energy minister Khalid Al Falih and his Russian counterpart Alexander Novak had agreed that the OPEC & non-OPC agreement to cut oil production output will be extended until March of 2018.

  • Falih said the extension to the cuts will be on the same terms as the first deal
  • Novak reiterated that the aim of the cuts is to rebalance supply and demand
  • Note that ministers from the OPEC states are due to meet May 25 in Vienna to discuss any extension of cuts past the current deal for the first six months of 2017. Its not until there that any extension would be officially agreed to by OPEC. But Russia and Saudi are two of the biggest players, Russia is the world's biggest oil producer, while Saudi is the biggest exporter.

Along with the higher oil price CAD benefitted:

Apart from the CAD movement it was relatively subdued in other currencies. There was plenty of weekend news (see bullets, above - North Korea and a German state election the major items) but nothing the forex market took hold of, yet at least.

The yen found a few buyers early, USD/JPY 'gapping' a little bit lower in early deals, but this was soon covered. USD/JPY, as I update, is near a session high at levels slightly better than late Friday US prices.

EUR, CHF are both little changed on the session. GBP has net ticked up a little against the USD.

NZD was a gainer relative to the AUD, both are up just a little on the day. Australian housing finance data passed by with little reaction, as did the Chinese data, which showed a miss on all 3 of IP, retail sales and investment.

Gold, too, sightly higher.

Regional equities:

  • Nikkei -0.17%  
  • Shanghai +0.28%
  • HK +0.51%
  • ASX -0.05%