Afternoon Market Update – 16/11/2016 – by Jaz Singh

November 16, 2016 by

Dollar strength has continued this morning session, with the dollar index testing the resistance level at 100.50. This comes as the economic outlook seems strong enough to allow for a quickening of the rate hike path in the US. Elsewhere in FX markets, the currencies of commodity producers have been hardest hit, such as the South African rand and Australian dollar. The yen has also been weak across the board with USDJPY nearing the 110 level. The yuan has also declined as five banks lower their year-end forecasts for the Chinese currency. The European bourses opened up this morning following the lead of Asian markets. In more recent trade we’ve seen a sell off in the equity space as the likelihood of a quickening US hiking path is priced in. WTI extends its declines this morning, testing the $45 handle.  This move comes after US inventory data showed an increase in stockpiles of 3.65 million barrels last week.