Currency markets were relatively quiet yesterday, with little high tier data released on the economic docket. The Greenback traded lower against the majority of its peers as investors speculated ahead of the FOMC’s rate decision and press conference this Wednesday. The major news of yesterday however, continued to surround the price of oil. A barrel of West Texas Intermediate for January delivery was trading 5% higher yesterday as more production cuts pushed the price up. The surge comes after non-OPEC countries including Russia, pledged to cut output next year.
In other news, Exxon Mobil Corp. Chief Executive Officer Rex Tillerson has been picked by US President-elect Donald Trump as the new secretary of state. A controversial choice by Trump as Tillerson has close ties to Russia. Tillerson has negotiated business deals in Russia that led to a working relationship with Russian President Vladimir Putin. The entirety of Tillerson’s career has been spent at Exxon Mobil. Trump recently tweeted that he would make an official announcement tomorrow morning.
Today’s main focus will be the release of the UK’s yearly inflation figure where consumer prices are anticipated to increase to 1.1%. Currently at 0.9% the weakness of Sterling since Brexit has no doubt made importing of goods more expensive, and as such is now starting to be see inflation creeping higher and faster than the BoE have expressed. From China, the world’s second largest economy, the yearly Industrial Production gauge is due to remain at 6.1%.