Markets Remain Stable on Wednesday

The dollar was unchanged against the euro as of 2:02 p.m. HK/SIN after the euro hit a four-month high of $1.2081 on Tuesday, nearing levels not seen since 2015 before pausing. Tuesday’s push forward was prompted by data showing that European manufacturers increased their production rates to the fastest pace in twenty years, hinting to a strong opening for 2018. Expectations that the European Central Bank will close its bond-buying stimulus program this year also sent the euro higher. The dollar, which struggled in the sessions leading up to the year’s end, will likely take its next turn from the Federal Reserve’s December meeting minutes which will be released later on Wednesday, as well as from the jobs data which will be released on Friday.

The dollar was relatively stable against its other primary trading partners on Wednesday as well, down a modest 0.03 percent against the yen to 112.25. The dollar was also down 0.03 percent against the Canadian dollar which has been boosted by higher commodity prices in recent days.

Commodities Mostly Unchanged

Gold futures were unchanged on Wednesday, trading at $1316.10 per ounce, while oil was fairly stable. U.S. WTI futures were trading up 0.02 percent to $60.38 per barrel and Brent crude futures were down 0.02 percent to $66.56 per barrel, remaining close to 2015 highs hit on Tuesday. Analysts are concerned however that a projected increase of U.S. production could undermine OPEC’s price control efforts and send oil prices lower. U.S. oil production has increased by nearly 16 percent since mid-2016 and there is no indication that it will be reduced anytime in the near future.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.