On November 28, 2023, the financial and commodities markets exhibited significant movements. Brent oil, a benchmark for Colombia, witnessed a 2.55% increase, reaching a price of 82 dollars per barrel in the afternoon. Simultaneously, WTI also rose 2.63% to 76 dollars. Concurrently, the US dollar's price in Colombia continued its downward trend for the third consecutive day, trading below 4,000 Colombian pesos.
The US currency closed the day at an average price of 3,957.71 pesos, below the Market Representative Rate (TRM) of 3,989.89 pesos. The anticipation of more US inflation data and the possibility of the Federal Reserve ending its rate hike cycle keeps investors on their toes. Internationally, the dollar reached its lowest level in three months against other significant currencies. There is a 25% probability that the Federal Reserve will begin cutting interest rates in March, according to CME's FedWatch tool.
Oil Market and OPEC+ Meeting
The oil market is awaiting the OPEC+ meeting to decide on oil production policy. International oil prices have risen in anticipation of this meeting. Meanwhile, the Antioqueño Business Group (GEA) and the Gilinski Group are nearing positions in the negotiation defining the spin-off of Nutresa.
The influence of gold and oil prices on currency values is under scrutiny. Currency correlations provide insight into Forex markets. The relationship between the Canadian Dollar and fluctuating oil prices and the correlation between the British pound and gold are key examples. The US dollar's influence on international trade and its relationship with gold and oil prices are also being closely observed.