The euro’s bounce against the dollar continued yesterday as stronger GDP data from the US wasn’t enough to compete against a poor consumer confidence reading. If shorts continue to be squeezed and EURUSD crawls higher we could see more pressure on the bears with a move back towards recent highs around 1.2600, especially since the US will start to wind down for Thanksgiving tomorrow. The real test for the euro comes this Friday when CPI data is released, expected to come in at 0.7% where anything higher could really see a pop higher in EURUSD.
For today there’ll be some focus given to sterling with the second reading of Q3 GDP which is due to stay steady at 0.7%. There is also the weekly jobless numbers and Michigan Consumer Sentiment, earlier in the week than usual due to Thanksgiving.
Oil is also going to be an important one to watch as we near tomorrow's OPEC meeting and already Russia, Saudi Arabia, Mexico and Venezuela have failed to agree on a cut in production this morning ahead of the main meeting. The recent decline in crude prices has generated fierce debate over whether Saudi Arabia are actually driving oil lower to harm US shale producers and are therefore unlikely to implement a cut in production to put a floor under the oil price. But in reality it is in the interests of OPEC not to see oil fall too low so any decrease in production below 30 million barrels a day could see a good bounce for crude. However, we are unlikely to see a dramatic rally back towards $100 as the overall fundamentals of a slowing global economy underpin the negative outlook for crude.
FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.