- Markets undecided due to Fed and Russia/Ukraine
- Oil prices trading sideways, bearish bias.
- US dollar starts session on a mixed noted
USDCAD open: 1.4111, overnight range 1.4091-1.4115, close 1.4103, WTI 57.73, Gold 4064.23
The Canadian dollar continues to consolidate lasts weeks losses as traders get comfortable with the currency pair above the psychological USDCAD 1.4000 level. Canada’s ongoing economic woes are well-know and reflected in the price.
WTI oil prices are falling (except as the gas pumps) and traded in a 57.43-59.27 do talk of and end to the Russia/Ukraine war, which would increase oil supply and exacerbate the expected glut in 2026.
The US will be releasing a mess of stale economic reports this week,
American families are gearing up for the annual Turkey Trot, filling highways, airports, and train stations as they head off to reunite with relatives, eat too much turkey, and argue over football. The rush also marks the unofficial opening of the holiday season, when companies wind down for year-end and traders dial back positions rather than risk profits in choppy, thin markets.
The White House is promoting a Ukraine peace proposal. The plan would permanently block Ukraine from joining NATO, hand Moscow major territorial and strategic concessions, and unwind sanctions. In exchange, Washington would gain privileged access to Ukrainian energy and mineral assets while offering Russia long-term economic incentives, including Arctic resource projects. Ukraine gets little in return.
Global equities were mixed overnight, with most Asian markets rising while Japan’s Topix barely moved. European bourses are quiet, and early U.S. futures trading is soft, with Treasury yields edging lower and gold pushing higher.
EURUSD traded in a 1.1502-1.1542 band and drifted upward as speculation about a possible end to the conflict in Ukraine encouraged buyers. Traders shrugged at weak German Ifo data, which showed sentiment deteriorating further.
GBPUSD moved within a 1.3085-1.3112 range while traders stayed cautious ahead of the UK budget announcement.
USDJPY shifted inside a 156.39-156.94 band as earlier losses stabilized. Talk of potential rate hikes and renewed intervention threats kept gains restrained, and a BoJ policymaker warned that higher import costs from tariffs could justify tightening in December.
AUDUSD held to a 0.6443-0.6468 range with markets waiting for clearer signals ahead of the December 10 FOMC meeting. The pair continues to find support from expectations the RBA will remain on hold, while traders anticipate the RBNZ may trim rates to 2.25%.
