US debates affect commodity currencies



Today is the second day of the Algeria meeting about resolution of the global oil glut issue. Crude prices are edging lower on fresh news about the talks development. Comments of the Saudi Energy Minister who indicated a “consultative” nature of the meeting dampened hopes for the positive outcome. The Iranian Oil Minister also stated that "it is not the time for decision-making." It seems the oil-producing countries will fail to reach an agreement once again. Now OPEC members plan to raise the question regarding the crude production freeze at the informal meeting tomorrow. However, traders doubt that the situation will change any time soon. The Brent crude benchmark came off the daily high at 47.20 dollars to trade at 46.38 per barrel. The Texas light sweet crude also dropped to 45.01 dollars per barrel. Traders are also awaiting the API crude stockpiles data scheduled for release in the US later in the session. Commodity currencies fell alongside declining crude prices against the US dollar. The first US presidential debate has a certain impact on the currency market, which can be witnessed in the dollar-loonie dynamic. The pair showed high volatility during the New York session. Today the pair has edged higher and is trading at 1.3232 levels. Currency strategists expect the greenback to keep rising against the Canadian dollar until the US presidential election in early November. Politics indeed affected the market sentiment. The debate between Donald Trump and Hillary Clinton with the latter deemed a winner supported the national currencies of Canada and Mexico that are parts of the North American Free Trade Agreement. https://www.instaforex.com

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