Daily economic digest from Forex.ee

Daily economic digest from Forex.ee

28 November 2016, 12:08
EEAnalytics
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Daily economic digest from Forex.ee

Stay informed of the key economic events 

 

Monday, November 28th  

 

The US dollar index is losing some points at the start of this week extending its correction rally. Last week the dollar showed sharply stronger performances against basket of major currencies reaching the highest level for the last 13-years, marked at 102 spot, as ongoing speculations over the Fed rate-hike were significantly boosting US dollar’s bulls. However, as market participants have already priced in next Fed’s hawkish interest rate decision the dollar has gradually begun to retreat from its multiyear highs. Moreover, today oil’s price downside rally has eased traders’ risk appetite thereby landing some bearish pressure on the dollar across the market.

 

Another much discussed question lately remains - will the OPEC reach an agreement on its meeting in Vienna. Last week the oil prices performed significant upside rally after president of the Russian Federation V.Putin has shown readiness to reach an agreement in oil-production-cut question. However, nervousness regarding this issue is gathering pace as Iran, one of the OPEC members, is not showing willingness in finding compromise. The OPEC meeting, scheduled on November 30th will grab all traders’ attention that day. 

 

Forex.ee analytical team notes that Australian dollar remains one of the strongest currencies of the last week. After bottoming the level of 0.7300 last seen in June 2016, the AUD/USD pair has performed a recovery and now is eyeing on the 0.7500 level. The main factor of Aussie wellness remains higher commodities, especially Copper. Moreover, broadly base USD dollar’s correction also is extending pair’s bullish momentum today. With relatively quiet data calendar scheduled for this Monday, traders will set up their focus on much awaited OPEC meeting, where oil output level freeze will be discussed. 

 

The euro has started this week on a positive note refreshing its weekly highs at 1.0680 level in cross with the US dollar. The main driver for the EUR/USD pair remains greenback’s correction across the market after sharp rally seen last week. However, seems that upside momentum is losing its spark allowing the pair to retreat from its overnight highs. Later in the session, the ECB chief M.Draghi will stand before European Parliament with his economic outlook of the consequences of the Brexit vote.

 

The main events of the day:

Speech of the ECB President M.Draghi – 16.00 (GMT +2)

 

Support and resistance levels for the major currency pairs:

EURUSD               S. 1.0495 R. 1.0673

USDJPY                 S. 111.85 R. 114.55

GBPUSD               S. 1.2393 R. 1.2525

USDCHF               S. 1.0062 R. 1.0224

AUDUSD              S. 0.7366 R. 0.7500

NZDUSD               S. 0.6950 R. 0.7106

USDCAD               S. 1.3419 R. 1.3581



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