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Finally Some Action !

By:
Sylvester Stephen
Updated: Sep 29, 2016, 08:04 UTC

We finally managed to have some action today morning, thanks to the announcement of a deal in Algiers between the oil producers to cut their production

Stock Market Trend

We finally managed to have some action today morning, thanks to the announcement of a deal in Algiers between the oil producers to cut their production output to shore up the falling oil prices. This cheered the markets and caused a huge fall in USDCAD pair as the price of this pair to tightly tied to the oil prices. The Canadian economy depends a lot on the oil price and any changes in the oil price would affect this pair.

The announcement also saw a jump in the prices of oil as the announcement began to sink in an details began to emerge. All this helped in building up a cheerful mood in the markets and this helped the smart money to flow into risky assets which are usually the stock markets and this kind of sentiment also leads to selling of the yen. The USDJPY pair finally broke through the range between 100 and 101 and reached as high as 101.40 as of this writing. There was no stopping the yen this morning as it continued to weaken, helped by the news of retail sales in Japan dropping to -2.1% as against the expected value of -1.7%. We expect this trend to continue for the whole day today with the yen continuing to weaken and with the stock markets continuing their bullish run.

There were the usual speeches from the ECB president Draghi and the different FOMC members but it did little to change the market forces as they either chose to totally ignore monetary policy or kept repeating what they have been saying all along.

Expect the feel-good factor to continue in the markets for today.
For more detailed analysis from the author, please visit NoaFX.

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