Afternoon Market Update – 22/11/2016 – by Jaz Singh

The data slate has been light this morning, with public sector borrowing in the UK coming in less than expected being the highlight. As the likelihood of a Fed rate hike in December edges towards 100% there seems to profit taking in dollar positions. The dollar index has extended its declines from yesterday’s session, currently trading near the lows of its daily range.  Cable has found resistance near the $1.25 level today after sterling was well bid yesterday afternoon. Stocks are on the front foot this morning, mainly off the back of strength in the commodity complex. However, in more recent trade we have seen a selloff in WTI from $49.00. This is likely the effect of profit taking as traders await confirmation from OPEC that an output deal has been agreed. This afternoon we have data from Canada in the form of retail sales as well as home sales from the US.