Daily Market Commentary Oil prices surged 25%, after President Trump announced a deal would be made between Saudi Arabia and Russia. President Trump announced that a deal was imminent and that the two nations had agreed to cut production by 10 to 15 million barrels! Oil prices surged and energy companies staged a massive recovery on equity markets. This was despite an enormous spike in weekly jobless claims. The number was so huge, that it exceeded most of the 'worst expectations', coming in at 6,650,000!
The key number was overwhelmed by the Oil news and other economic data was also ignored, as equity markets surged. The Oil spike boosted the oil dependent currencies of Norway and Canada. US Durable Goods Orders and Factory Orders were in line with expectations, allowing markets to recover some more lost ground. The USD continued to gain ground though, with the EUR falling to 1.0850, while the GBP dipped below 1.2400.
Commodity currencies were caught between a rock and a hard place. The rising reserve restrained the rebound in these currencies, with the AUD trading 0.6050, while the NZD regained 0.5900. Market conditions remain volatile and big moves are likely. The close of the week will be focused on the Employment data and Non Farm Payrolls.
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