Afternoon Market Update – 24/11/2016 – by Jaz Singh

The dollar has extended its leg higher this morning as the economic outlook for the US continues to improve.  The USDJPY pair is currently trading at an 18 month high, with emerging market currencies being most hit by the greenback’s strength. The Indian rupee has declined to record lows against the dollar, while the EURUSD has regained some of its losses from yesterday’s trade. Since Trump’s election the pair has dropped by over 4 percent as the monetary policy divergence between the Fed and ECB looks to be on the verge of widening. The Japanese Topix index is currently in its longest winning streak for 15 months off the back of further yen weakness. The European bourses are little changed today with the DAX seemingly stuck within a 100 pip range. WTI crude is also flat for the day, currently trading just above the $48 handle. Russia is looking for an output freeze rather than reduction, while the Iraqi PM has said the country shall cut its production levels as part of the OPEC deal. Such conflicting statements are inducing this lack of direction in oil markets; participants hope that the cartel can come up with a definitive deal in its meeting next week.