The price of crude oil fell briefly below the closing level for the year at $75.35. The low price reached $75.27. The catalyst was a report that Saudi Arabia and other OPEC member were mulling a 500K cut in production at the December 4 meeting.
The headline not only sent oil lower, but the USDCAD also moved higher (lower CAD) and to the highest level since November 10 as the CAD reacted to the lower oil price levels.
However, later a Bloomberg report came out saying a Saudi official denied the production hike and the current OPEC agreement was good until the end of 2023 (barring any supply/demand disruptions). That led to a sharp rebound back higher in crude oil. The full decline was erased with the price moving to a new intraday high or $80.48.
The USDCAD also moved back lower erasing the gains from the initial rumor. Nevertheless, because of a strong USD coming into the US session, the USDCAD is still closing the day higher by 0.51%.
Overall, the USD was the strongest of the major currencies today. The move higher of 1.13% was the strongest. The greenback also rose 1.0% over the AUDUSD and 0.82% vs the EUR.
The JPY was the weakest of the majors (see rankings above). The USDJPY moved back above its 100 day MA and 200 hour MA near 141.09 and peaked near 142.25. The price is trading near the 50% of the last trend leg down from the November 9 high at 142.15. Getting above that level in the new trading day would have traders eyeing the post CPI high from November 10 at 142.467. The 38.2% of the move down from the high from October is at 143.108.
In other markets:
- Spot gold is trading down $-12 or -0.68% or $1738.
- Spot silver is trading down $0.08 or -0.40% at $20.84.
- WTI crude oil is trading at $80.21 after settling at $79.73
- bitcoin is trading sharply lower at $15,641. The
In late news, the crypto firm Genesis may have to file for bankruptcy after talks for fresh capital over the weekend failed. The price of bitcoin is trading at the lowest level since early November 2020. More trouble in crypto land.
In the US stock market, the major indices close lower led by the NASDAQ index:
- Dow -0.13%
- S&P -0.39%
- NASDAQ -1.09%
- Russell 2000-0.57%
in the US debt market, yields were mixed:
- 2 year yield 4.56%, +5.1 basis points
- 5 year 4.025% +2.8 basis points
- 10 year 3.830% +1.3 basis points
- 30 year 3.907% -2.0 basis points