A snapshot look at the week so far: dollar reigns - Nomura

Analysts at Nomura noted a quiet week but trends continue and a relatively quiet week in terms of events; however, the dollar continued to strengthen, remaining supported by US yields moving higher. 

Key Quotes:

"OPEC headlines continued to move the oil market as the 30 November meeting approaches. 

Our China oil and gas team believe there is a 70% chance of OPEC announcing cuts at the meeting next week. 

It believes Iran is likely to cooperate with Saudi Arabia, as it needs higher oil prices to attract investment to lift long-term production. 

The FOMC minutes for the December meeting suggested a rate hike in December is likely in our economists’ view. 

Our economists published an update of the “Trump effect” on the US economy. 

The main changes to the forecasts are the GDP growth forecast for 2017, which is now 2.0% (from 1.9%), and for 2018, which is now 1.8% (from 1.6%). 

PCE growth was also upwardly revised in 2018 to 1.9% (from 1.6%). It expects a slightly more aggressive Fed (with two hikes in 2017 and three in 2018)."