Wow!!! Did you see that?
OPEC managed to put an astounding deal together and sent the price of crude oil up by a breathtaking 8%, all the way up to $50 a barrel, the very top of its long term range.
The deal surprised everyone, except the eToro community, who as we pointed out yesterday were 85% long on oil. Many buy positions were closed, with an average closing rate of $48.66 a barrel.
Pundits are saying that they won't be able to make the promised cuts. However, the community is not so sceptical. Though many did get out with their profits already, the sentiment is still showing 70% buying.
Wow, what a move!!
-Mati
Today's Highlights
Draghi's Drum
Incredible Yen
NFP Tomorrow!!
Please note: All data, figures & graphs are valid as of December 1st. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
Today is the first day of the last month of the year. November was incredible, let's hope December holds more of the same. We have three full weeks until volumes begin to dwindle for the holidays.
Markets were up across Europe yesterday. Mario Draghi continued to beat his drum saying that European governments need to take advantage of the low interest rates while they can. A rather mixed statement for sure. I mean, is he trying to signal that rates will go up or just trying to scare them into action?
Wall Street didn't do quite as well with the SPX500 declining 0.27% and the DJ30 managing to close up almost 2 points, for a total gain of 0.01%.
Asian stocks are flying today after some positive numbers from China and Japan.
After its massive gains yesterday the US dollar is pulling back ever so slightly. The level to watch on the dollar index is 100.50. As we can see the Trump Trade brought us over the yellow line. Now the question is if we can hold above it.
The Incredible Weakening Yen
This is a currency we've been watching very closely and it's making the most incredible moves. Yesterday the USD/JPY saw the 114 handle for the first time since March. With a trend this strong we need to start zooming way out on the charts to try and grasp the possibilities of where we might be heading.
In the chart above, we can see the history of the yen since Shinzo Abe came to power on a weak yen platform. In this article, we can see all sorts of calls from large banks. BNP Paribas is saying 128 by next year and Morgan Stanley is saying 130 by mid-2018.
But there are far more interesting pairs to trade against the Yen. Here, how about the GBP/JPY?
The British pound has been kicked by the Brexit, but has been showing strong signs of stabilizing lately. This pair is at 143 today. The highs set in August 2015 were at 195. That's more than 5000 pips away.
Today
There are a host of light news events on the calendar for today and a few heavy ones. The highlight will most likely be the ISM Manufacturing PMI from the US this afternoon.
Mostly today will be a preparation for tomorrow's NFP announcement.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.