Forexlive Americas FX news wrap: US (and others) release SPRs but oil rallies

Author: Greg Michalowski | Category: News

Forex news for North American trading on November 23, 2021

The US day started with Pres. Biden announcing a coordinated release from Strategic Petroleum Reserves. China, India, Japan, Korea, UK all participated on paper at least (the amounts were minimal).  For the US the announced a 50M release consisting of 32 million barrels that will be an exchange over the next several months (releasing oil that will eventually return to the SPR in the years ahead), and 18 million barrels will be an acceleration into the next several months of a sale of oil that Congress had previously authorized.  The daily use is around 18M barrels a day. 50M /18M = less than 3 days of supply.   Other countries share was also relatively low.  

The price of crude oil traded to a low of $75.32. That was still above the low reached a few days ago at $74.75. The high price reached $78.84 and settled at $78.50, up 2.28% on the day. For other thoughts on the action today see Adam's post by clicking here.

With oil off to the side, the market focused on things like rates and the stock market. There was some economic data as well with the Markit PMI coming in at 57.0 versus 59.1 expected (demand slowed and prices remained high). The Richmond Fed index was better, however, at 11 versus 5 estimate.  

In the US debt market, yields at the backend of the yield curve closing the day higher with the 10 up 5.4 basis points and the 30 year up 5.7 basis points. Two year yields did come off however as traders took some profit after the yield peaked at a cycle high of 0.687% (highest yield since March 2020).

Forex news for North American trading on November 23, 2021

The higher yields helped to push the NASDAQ index lower. The index traded down over 1% on the day and if it stay down that low would been the first back to back 1% declines for the index since March. That was not to be as lovely day rally took the toward its middle of the range at -79.61 points or -0.50%. Both the S&P and Dow industrial average did close higher. The S&P is 1% from its all-time high. The NASDAQ index which made a new all-time high just yesterday, is  3% from that level.  European shares were mixed today.

The table below shows the highs, and lows and changes from a price and percentage basis for the major US Europeans stock indices today.

The US stocks
In the forex market, the CAD is going out as the strongest of the major currencies helped by the rebound in crude oil.  The JPY was the weakest of the majors. The USD is ending the day thoroughly mixed with an equal amount of gains vs the losses. The greenback rose modestly verse the GBP, JOY, CHF and NZD and fell modestly vs the CAD, EUR and AUD.  The biggest gainer was vs the JPY at 0.23%. The largest decliner was vs the CAD (-0.28%).  

The strongest and the weakest of the major currencies.

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