Daily wrap up – 22 November

The highlight of the day was the recovery of the euro for the second day in a row after falling at the start of the week after the failure of German coalition talks following the withdrawal of the FDP from the talks, so that the euro back to the 1.18 levels.
With no current government in Germany, speculation about a possible postponement of the Eurozone summit to be held mid-next month has been denied by European Council President Donald Tusk and will be on the agenda of the summit debate on whether there will be a budget and a eurozone finance minister.
The minutes of the Fed meeting were somewhat dovish, but they were within the minority. Few members opposed the rate hike in light of the weakness of inflation, but some members believe that the continued improvement in the labor market will lead to higher inflation.
The US Federal Reserve is likely to raise interest rates for a third time this year at the December meeting, after the markets have priced in the hike heavily. On the other hand, the fifth round of NAFTA reform talks saw a failure to reach substantive differences and negotiators are scheduled to meet again in December ahead of a sixth round of talks in Montreal, Canada.
Oil prices rose sharply today following the disruption of a major oil pipeline from Canada to the United States to reach the levels of $58 a barrel for the first time since June 2015, and markets are waiting OPEC meeting with Russia and 9 other countries at the end of this month in Vienna to discuss the possibility of extending the agreement Cut output beyond March 2018 amid news of Saudi Arabia pressure to extend the deal.