The first full week of November has so far proved pretty uneventful for the markets. Though we have had plenty of political headlines such the Saudi purge, Trump’s Asian tour and resuming Brexit negotiations, the financial markets have traded pretty sideways with the one exception being Bitcoin which we will discuss in a little while. So with Fridays closing bell on the horizon here is quick overview of some of the key currency pairs and commodities.
After the ECB confirmed that they will be halving their asset purchasing program but extending it further in 2018, the EURO had come under pressure at the end of October. With Mario Draghi once again taking the centre stage at the ECB forum on the 7th November, he was unable to really give the EURO any real lift. However, over the last two trading sessions, the EUR/USD has bounced back slightly. The main driving force behind this is the weaker USD due to the latest concerns over the US tax cut bill being delayed. At the time of writing the EUR/USD is currently trading at 1.1652
With the Bank of England finally pulling the trigger and raising interest rates on November 2nd, the sterling initially dropped like a stone against the likes of the USD and the EUR. However, despite the ongoing fiascos which is the Brexit negotiations and a week that Theresa May can’t wait to forget with her losing two senior ministers, the GBP has recovered slightly. It is beginning to look like GBP bulls are beginning to ignore the drama that tends to go hand in hand with British politics at the moment. At the time of writing GBP is trading at 1.3205 against the USD.
WTI oil has maintained its impressive recovery after having suffered a three-year bear rout. Drama and tension in the middle east and indications that cuts in production by OPEC will continue longer than original expected has supported oils recent moves higher. US Crude oil inventories also came out higher than expected on Wednesday at 2.2 million barrels versus -2.5m barrels expected but didn’t hurt oil either, showing that in the mid to long term there are concerns of a potential slowdown in supply.
At the time of writing WTI Oil is trading at $57.17 a barrel.
Though gold did hit a 3 week high in yesterday’s trading session on the back of US tax cut bill woes and growing tensions in the middle east region, it has since fallen back slightly and is currently trading at the time of writing at $1284.12 oz. With the USD suffering with the continuing debate on Capitol Hill the market will most likely keep an eye on the yellow metal over the next month especially with the potential US Government shutdown in December and the ongoing development with Saudi Arabia and its neighbors.
Now what can I say about Bitcoin. Though the currency markets haven’t really caught the attention of traders there seems to be never a dull moment for the infamous cryptocurrency. First it hit a new all-time high of $7872.60 on Wednesday with it still enjoying the revelation of last week’s announcement by the CME of their intention of launch Bitcoin future contracts and the cancellation of next week’s fork. But over the last 48 hours it has dropped by over $1000 and at the time of writing it is currently trading around $6741.60 per coin. There seem to be no lack of surprises from Bitcoin.
Next week, market data wise will be dominated by talk of inflation with the Consumer Price Index being released by the United Kingdom, United States and Canada.