All market participants are preparing for one of the most important weeks of the year. The ECB is planning to increase incentives, the Fed is trying to determine as accurately as possible the current situation with data on employment before the meeting on 15-16 December.
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On December 4 there will be held the 168th OPEC meeting, which is so much expected by market participants. The most discussed scenario of the meeting results - is the preservation of volumes production at the current level of 30 million barrels per day. OPEC categorically does not want to reduce the production volumes, and thus gives a signal to market that the cartel will not reduce oil production, while other manufacturers do not do this.
Recently, OPEC adopted Indonesia into its ranks, such a choice has surprised many, because this country consumes twice as much oil than it produces. In early December Indonesia will officially receive a place in OPEC after nearly seven years of freezing its membership. According to the promises of Indonesia, it is the only Asian country and will be aimed at this market, which has the greatest demand in regions.
The oil price continued to decline, and the pressure on Saudi Arabia is increasing against the background of the currency peg refusal. According to the analytical agency the contracts, which are used for trading on the exchange rate of riyala over the next 12 months rose to record highs in the last 13 years.
Reservoirs for oil are overcrowded and their number in the world is ending. In the near future place may finish even on tankers, which, of course, increases the possibility of lower prices for crude oil, say experts. Goldman Sachs company informed their customers that increase of oil reserves in the world market will be superimposed on a warm winter. Combination of these two effects may reduce the price of oil to $20 per barrel, and thus stop production completely.
Housing in China becomes more expensive for the first time over the last year on annualized basis, showing the possibility to stabilize housing market, which may accelerate the paces of economic recovery. Experts believe that opportunity of a sharp decline in housing prices is unlikely, as there is a huge number of unsold construction projects in the market now, which are in major cities across the country.
Friday's terrorist attacks in Paris collapsed Asian stock market to a minimum of the past six weeks. Also emerging market currencies have fallen, traders went into safe assets after the tragic news that showed a weakening of the economy. Today, the financial analysts predict the following data: British FTSE released at 100, losing 0.7%; German DAX fell by 1.3%; CAC France will lose the most - 2.2-2.3%.
This morning on the European trading session, gold prices rose after the head of the Federal Reserve Janet Yellen declined to comment about plans of the Central Bank to raise interest rates in December. However, the growth of dollar can be tempered as "American" will first restore its position after the reduction.
The growth rates of China's economy are still unable to gain the required speed. This is evidenced by the Asian stock market, which decreased on Wednesday against the backdrop of a two-pronged Chinese data. The industrial production index of October fell to 5.6% in the previous month, against the indicators of last year, thus demonstrating not enough stable growth from 5.8%. Volumes of retail sales rose by 11% against last year's values, on the background of expected growth by 10.9%.
Confidence in the US economy is growing, as well as the US dollar. According to MarketWatch analysts, today US corporations are concerned about the strengthening of national currency and sales abroad the USA, in turn, the majority of investors in the market feel quite confident. One of the leading investment strategists of BlackRock Russ Koesterich said: "Now any action to strengthen the dollar or tightening the monetary policy may dramatically slow down increase corporate profits, as well as their extension. However, according to the productivity of the US stock market over the past week, investors do not attach importance to this fact."