Potential Presidential executive action on immigration and the reaction by the Republican leadership along with the imposition of fines on the U.S., British, and Swiss banks for foreign exchange manipulations could make for a volatile week.
Encouraged by the relatively temperate conditions provided by 9 new session lows since the mid-October bearish reverse, Treasury bears had continued to forage instead of taking to their dens for a long winter nap.
U.S. crude production is at the highest level since 1986 and is on target to exceed 9 million barrels per day. Average price for Brent crude oil is expected to be about $18 a barrel lower next year than previously forecast."
The yen fell to a seven-year low versus the dollar on speculation Japan’s Prime Minister Shinzo Abe is considering postponing a planned sales-tax increase and preparing to call a snap election next month.
OPEC is giving oil bulls little to hang their hat on. Even the United Arab Emirates economy minister Sultan bin Saeed Al Mansouri said that declining oil prices will have not any material impact on their economy and that OPEC will not cut production.
The pound rose versus the dollar, extending a gain from the end of last week, as a gauge of retail sales exceeded analysts’ forecasts and trading patterns suggested the U.K. currency was due to halt its downward trend.