Friday November 28, 2014 - 02:13:59 GMT
Share This Story
Reuters - www.reuters.com
FOREX-Dollar firms as Canadian, Norwegian currencies slide on oil
* Canadian dollar, Norwegian crown under pressure as oil slides
* OPEC decides against cutting output despite oversupply
* Euro eyes inflation data, Swiss franc watches "gold" vote
By Ian Chua
SYDNEY, Nov 28 (Reuters) - The U.S. dollar held firm early on Friday, having made notable gains versus the Canadian dollar and Norwegian crown in an otherwise lacklustre market because of a holiday in the United States.
Investors took aim at currencies of oil-rich countries after OPEC decided against cutting output despite a huge oversupply in world markets. Oil prices tumbled as a result, with Brent crude settling at a four-year closing low of $72.82.
The U.S. dollar rallied to 6.9438 crowns, reaching a high not seen in over five years. It was last at 6.9240. It raced to a one-week high against its Canadian counterpart at C1.1355, before steadying at C$1.1330.
The euro jumped to 8.6675 crowns, coming within a whisker of a five-year high of 8.6790 set earlier this month.
The greenback was barely changed on the yen and a touch firmer against the euro. It bought 117.72 yen, while the euro drifted down to $1.2467 from $1.2524.
Not helping the common currency, weak inflation data in Germany and Spain raised the chance that the euro zone reading due later on Friday could undershoot expectations.
The soft outcomes in Germany and Spain suggested the risk of deflation in the wider euro area had not yet abated, putting pressure on the European Central Bank (ECB) to ease further.
"The market consensus is already for 0.3 percent, but overall the data is likely to continue to indicate the need for the ECB to deliver more easing," analysts at BNP Paribas wrote in a note to clients.
"We reiterate that FX markets are under-pricing the probability of an announcement of broader scale asset purchases at Thursday's meeting. We remain short EURUSD and EURGBP into next week."
Japan also releases its inflation data later on Friday.
The focus this weekend will be on Switzerland, where voters on Sunday will decide if the central bank should hold more gold in its reserves.
The market has already been testing a cap on the Swiss franc, which the central bank has successfully defended since 2011. The Swiss National Bank has warned it may not be able to continue doing so should the 'yes' vote win. (Editing by Peter Cooney)
© Thomson Reuters 2014. All rights reserved.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."