November 21, 2023
CURRENCIES:
Currency Pair Movement:
- USD/CAD experiences a decline, currently trading close to 1.3710.
- Recent gains in USD/CAD are retraced during the Asian session on Tuesday.
Crude Oil Impact:
- Improved Crude oil prices pose challenges for USD/CAD.
- Western Texas Intermediate (WTI) is valued at approximately $77.50 per barrel.
- Market speculation indicates the possibility of OPEC implementing additional production cuts during its upcoming meeting on November 26.
Canadian Economic Indicator:
- Consumer Price Index (CPI) for Canada is expected to show a moderation to 3.2% in October.
- The Canadian Dollar (CAD) gains support against the US Dollar (USD) amid higher Crude Oil prices.
Market Analyst’s Perspective:
- Analyst Akhtar Faruqui reports on the situation, emphasizing the influence of Crude oil prices on USD/CAD movements.
- Highlights the market’s anticipation of OPEC’s potential decision to further reduce production.
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STOCK MARKET:
Market Response to Microsoft’s Strategic Move:
- Microsoft (MSFT) stock achieves an unprecedented high on Monday.
- The hiring of Sam Altman, following his departure from OpenAI, is widely regarded as a strategic “coup” by Wall Street.
Altman’s Impact on Microsoft:
- Sam Altman’s recruitment is deemed a significant development, eliciting positive reactions from Wall Street and Silicon Valley investors.
- Altman, along with OpenAI co-founder Greg Brockman, is set to spearhead a new advanced AI research team at Microsoft.
Surprise Element in the Tech World:
- Altman’s exit from OpenAI sends shockwaves through the tech industry over the weekend.
- The surprise development catches the attention of key figures, including Microsoft CEO Satya Nadella and investors on Wall Street.
Stock Performance and Market Sentiment:
- Microsoft (MSFT) stock closes at an all-time high as a result of the news.
- The move is met with enthusiasm and optimism among investors and venture capitalists.
Unofficial Status of Altman’s Deal:
- Contrary reports emerge on Monday afternoon, indicating that Sam Altman’s agreement with Microsoft is not yet officially confirmed.
- The Verge reports a weekend-long back-and-forth, introducing an element of uncertainty regarding Altman’s transition to Microsoft.
COMMODITIES:
Oil Price Recovery:
- Oil prices exhibit a robust recovery, up by over 7% from the lows observed last week.
- Anticipation of reaching $80 per barrel becomes increasingly feasible amidst the ongoing resurgence.
OPEC+ Speculation:
- Ongoing speculation surrounds the possibility of additional supply cuts from OPEC+.
- The organization’s meeting later this month intensifies discussions on maintaining stability and sustaining oil prices above the $80 per barrel threshold.
Technical Challenges vs. Market Sentiment:
- Despite potential technical obstacles, market sentiment and concerns from OPEC contribute to sustained interest from bullish investors.
- Factors beyond technical hurdles, such as sentiment and OPEC considerations, continue to drive market dynamics.
Recent Market Drivers:
- Recent gains, around 2.7%, attributed to concerns about a new EU sanctions package on Russian Oil.
- Speculation gains momentum as OPEC+ discussions on potential further cuts add fuel to the oil price rally.
OPEC+ Deliberations:
- OPEC+ faces a pivotal moment, contemplating additional measures to uphold oil prices above $80 per barrel.
- Despite initial resistance to supply cuts, OPEC’s earlier decisions have been vindicated by macroeconomic conditions and oil price trends in 2023.
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My name is Styliana Charalambous, possessing a professional qualification as a Chartered Certified Accountant and a Bachelor’s Degree in Accounting and Finance. Highly motivated financial analyst with expertise in audit and investment strategies. I have several years of experience in the finance industry, as an audit supervisor at KPMG and the Head of Investment & Market Research in a multinational Fintech company. Passionate about personal finance, investing, and creating finance content on social media. Lecturer in Accounting & Finance at Canterbury Christ Church University. I am the Founder and CEO of Selfmade Academy, an organization that helps thousands of students worldwide to plan for their financial future and make smart decisions about their money
