CAD up on Higher Oil Prices, AUD down as RBA Eases

Note  The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore there can be discrepancies between the forecasts given in the table above and in the text charts. 

Rates as of 0400 GMT

Market Recap

CAD was far and away the bestperforming currency, as you can see. 

I get tired of showing this graph, but they do say that a picture is worth 1,000 words, and since I get paid by the word, this is the easiest way for me to get rich

So then the obvious question is, why was oil up 6 in a day, when everything Ive been hearing about it has been negative? The answer, according to Bloomberg, is increasing  signs OPEC will delay a planned easing of output cuts. 

In case you dont know the background, OPEC plus a few other producers notably Russia agreed some time ago to cut output to prevent prices from collapsing. They have a schedule for relaxing those output cuts relaxing an output cut increasing production. They allowed some increase back in August I think it was and were planning another 2mn barrels a day bd increase from January.

The Russian oil minister Monday met with Russian producers to discuss delaying the production increase, which I gather was taken as a good sign.

Im surprised at the jump in prices, because as Bloomberg also said, OPECO O has been dropping hints for weeks that its plan to add almost 2mn bd of supply from January is being reconsidered as demand falters….

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