The meeting between OPEC member nations and Russia proved to be a productive one, as Nigeria will be joining the production cut agreement by limiting its output to 1.8 million barrels per day. Moreover, Saudi Arabia will keep its oil exports to 6.6 million barrels per day next month, or 1 million below last year’s level. Crude oil is up +1.5% and the Canadian dollar is treading water against the U.S. dollar this morning.
Today, the U.S. Federal Reserve (Fed) kicks off a meeting that will wrap up tomorrow with a key rate decision. The market consensus is that the status quo will prevail. However, we will be paying close attention to all comments from Fed Chair Janet Yellen, who will be providing details on the plan to reduce the Fed’s USD $4.5 trillion balance sheet. The US Dollar Index (DXY), which gauges the strength of the U.S. dollar against a basket of currencies, continues to waver near its lowest level of the year, reached last week.
Today, we’ll be keeping an eye on U.S. Consumer Confidence for July at 10 a.m.
Have a nice day! Yusuf Kocagozli
Range of the day: 1.2475 – 1.2560