The Euro (EUR) heads into the week in a strong position as the currency increased from 1.1330 to highs of 1.1380. The performance comes on the heels of news that Italian bond yields dropped following comments from the Italian government about lowering the 2019 deficit target from the current 2.4 percent figure down to 2-2.1 percent.
The British Pound (GBP) has remained solid thanks in large part due to the official approval of Brexit by the European Union (EU). However, analysts worry that the gains will be tempered because the plan is unlikely to pass through the Parliament legislature in its current form and will likely need to be altered. The lack of additionally significant trading news will keep the GBP trading within a small range. On the US side of the markets, investors will be looking to Thursday when the Federal Reserve releases the minutes from its November meeting. Analysts will be looking to the minutes for clues as to the Fed’s intentions with raising interest rates in December. If the Fed raises rates as expected, it will be the fourth rate hike of the year. Some investors are hopeful that the Fed will be less aggressive with rate hikes heading into the new year as the Dow continues to slump. The US Dollar (USD) begins the week in a slump, as the index dropped 0.2 percent with loses to all of its global counterparts with the exception of the Japanese Yen (JPY).
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asdasdasdFriday’s panicked selloff of global oil showed a rebound in the early Monday trading hours. Both WTI and Brent crude dropped almost eight percent as the week closed, however, the prices gained back two percent on Monday. Brent crude surpassed the benchmark $60 per barrel mark as the markets opened. The weekend’s escalating tensions between Russia and Ukraine provided a significant boost to oil prices. Last week’s selloff was the biggest one-week drop in almost three years, contributing to the bearish outlook. As the trading week comes to a close, all eyes will be on the G20 Summit that will convene at the end of the week in Buenos Aires, Argentina. Two key issues will be the focus of the event with the ongoing trade tensions between the US and China being at the forefront of discussions. Investors will also be focused on how Russia and Saudi Arabia will address oil supply cuts in anticipation of the upcoming OPEC meeting on December 6 in Vienna.
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