Forex Today: Oil prices skyrocket after attack on Saudi installation, Chinese economy slows, Brexit talks continue
|Here is what you need to know on Monday, September 16:
- A drone attack on a Saudi oil facility knocked down around 50% of the Kingdom's output and 5% of global production. Oil prices have soared by nearly 20% and stabilized around 10% higher, with WTI trading near $60. The safe-haven yen and currencies of oil-producing countries as the Canadian dollar and the Norwegian krone are on the rise. Yemeni Houthi rebels took responsibility but the US blamed Iran for the assault. President Donald Trump said that the US was "locked and loaded. "
- Chinese Industrial Production rose by only 4.4% YoY in August, below expectations and at the lowest rate since 2002 – adding to concerns about the global economy.
- EUR/USD is trading steadily below 1.11 despite reports that the US may slap tariffs on the EU due to the latter's subsidies of Airbus.
- GBP/USD is retreating from the highs around 1.25 as UK prime minister Boris Johnson heads to Luxembourg to meet European Commission President Jean-Claude Juncker. Johnson angered his European counterparts by comparing himself to Hulk – saying he wants to unchain the UK from Europe's shackles. Reports from Brussels suggest some progress has been made toward reaching a deal.
- US yields have been dropping after surging last week. Tension is mounting ahead of the all-important Federal Reserve decision on Wednesday.
- Only the US Empire State Manufacturing Index is due today, leaving room for speculation about the Fed and further fallout from the weekend attack in Saudi Arabia to impact markets.
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