Market Analysis

The US dollar is gaining ground on other major currencies

FOREX

The US dollar is gaining ground on other major currencies during the early part of Friday’s session, as investors position themselves for the release of November’s Non-farm payroll data later in the day. The US jobs data is normally one of the main economic calendar events for foreign exchange traders, and today’s release will be even more so, given the potential compounding effect a surprise upside reading may have on a market already conditioned by the increased hawkish tone of the Fed. The data will obviously precede any impact the new virus variant may end up having on the economic recovery, but a positive surprise could still give the dollar an additional boost and propel it back to levels close to the yearly maximums reached last month.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

OIL

WTI crude prices continue to recover during early Friday trading, having bounced back from multi-month lows on Thursday, following mixed messages from OPEC+. The oil cartel announced its intention to stick to the plan of increasing production in January, but, with one caveat: should demand fall, due to the impact of measures to control the spread of the Omicron variant, the members of the organization will act and adjust output accordingly. Essentially, OPEC+ is saying it will do the necessary to maintain a balance between supply and demand, a stance that halted the losses of the last seven days, providing support for oil prices.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
European shares extended yesterday’s gains following another positive trend in Asia overnight, and ahead of key data today. Yesterday’s strong rally is seen as a sign that bull traders are still in the market. While some took profit on uncertainty spawned by the latest covid variant, most bought this week’s dip as Omicron concerns look set to decrease. This bullish attitude may tell us something else: bets of a hawkish switch from Central Banks, with the Fed in focus, could be less widespread than previously thought. While It is clear that US macro figures have not been reassuring for some time – especially GDP –  some investors believe today’s NFP could potentially fall short of expectation, killing hawkish expectations from the Fed. Today’s data release will be crucial, as it will provide investors with more clarity on the short- to mid-term outlook, and no clearly directional price action is expected before this afternoon’s update.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

 

The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.