US equity futures trade in positive territory retracing earlier losses thanks to optimistic commentary from President Obama and House Speaker Boehner. Boehner said he was confident that a deal on the "fiscal cliff" to avert large tax hikes and spending cuts could be reached and Obama confirmed this saying he hoped a deal could be reached before Christmas. Market focus remains fixed on fiscal cliff budget talks with commentary indicating progress towards a deal historically met by positive sentiment. T-notes were however resilient to the news as the markets await more concrete developments and currently trade in positive territory.
EUR/USD trades flat, earlier losses were seen over scepticism regarding the Greek debt deal though the move was pared following USD weakness. GBP/USD traded in tandem with EUR/USD for most of the session; the pair currently trades in negative territory but has retraced some of the losses on the back of USD weakness.
WTI and Brent crude futures trade in negative territory managing to shake off positive sentiment in equity markets after fiscal cliff news, in WTI the 86.00 handle was broken at the open and prices slipped to session lows. RBOB gasoline saw a large move to the downside on the back of a higher than expected DoE Gasoline Inventory figure. Other responses to the DoE inventories were muted as figures came in line; ambiguity is seen across the markets with continued protests in Egypt and tensions with Iran.
Print 18:44, 28 Nov 2012 - Economic commentary - Source: RANsquawk
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