Daily economic digest from Forex.ee
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Tuesday, November 29th
Nervousness around upcoming OPEC meeting is significantly influencing the market. This morning became known that Iran is ready to reach a deal in oil production freeze question. Today Iran’s Minister of Petroleum stated that Iran is ready to cut oil production within OPEC quotas. Moreover, Iran’s Minister of Petroleum noted that the US election results did not affect new contracts for oil and gas that is why an agreement could be reached. On the other hand, Russian Minister of energy provided the market with comments that Russia is not going to take part in the OPEC meeting as it remains non-OPEC member. Today market participants will continue to pay attention to developments surrounding the upcoming OPEC meeting that is scheduled for tomorrow, 30th of November.
The EUR/USD pair is trading modestly flat this Tuesday hovering around 1.0600 level. Moreover, today the euro will continue trading under bearish pressure on the back of worries based on Italian constitutional referendum that will be held on this Sunday. The main topic of the referendum remains approval of amending of the Italian Constitution. Moreover, yesterday traders negatively reacted on M.Draghi’s neutral statement in European Parliament sending the pair to retest its Monday’s lows at 1.0564 level. However, rally in oil prices seen lately has triggered risk aversion sentiments across the market rescuing the euro below 1.06 handle. Today US GDP released in NA session will take the most part of investors’ focus.
Yesterday the USD/CAD pair crashed for a cent to its multiday lows marked below 1.34 level on the back of oil price rally. However, the major managed to recover part of its losses, rising to 1.3434 spot, but still staying under bearish pressure as oil prices will continue to drive the pair during this day. Moreover, yesterday head of the BoC S.Poloz said that Canadian economy is experiencing some weakness lately but it was expected and BoC is ready to handle it also providing bullish momentum to Canadian currency. Today traders will continue closely eyeing the latest headlines regarding the OPEC meeting.
The cable remains broadly flat this morning wobbling around 1.24 level in cross with US dollar. Yesterday the GBP/USD fell for a cent reacting on a wave of risk aversion triggered by significant rally in oil prices. Today the pound will continue to trade under bearish pressure following broadly shrinking risk appetite in light of the upcoming tomorrow’s OPEC meeting, Friday’s Non-Farm Payrolls and the Italian Referendum scheduled for the weekend.
The main events of the day:
Prelim. German CPI – 15.00 (GMT +2)
Prelim. US GDP – 15.30 (GMT +2)
US CB Consumer Confidence – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0498 R. 1.0742
USDJPY S. 110.46 R. 113.70
GBPUSD S. 1.2298 R. 1.2590
USDCHF S. 1.0035 R. 1.0213
AUDUSD S. 0.7409 R. 0.7529
NZDUSD S. 0.6996 R. 0.7140
USDCAD S. 1.3307 R. 1.3587
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