Article By RoboForex.com
The Big Picture
It was intended to be the way out of a misery. What was, until recently, viewed as unrealistic by experts, could happen next week. Opec will reduce oil production and also cap output. The cartel is looking to finalize this agreement within one week. The largest members, Saudi Arabia and Iran, were particularly divided. The political and religious differences in the countries causing negotiations to fail. Oil prices reacted positively to this surprising news, and were able to gain 10% in recent days. The oil production cap of 800 000 barrels has more of a psychological effect, in effect amounting to 2.4% of production. Viewed in regard to worldwide production, this reduction amounts to 0.8%.
DAX
The DAX is in a sideways trend. Resistance is at 10820, support at 10250.
Euro / USD
The Euro is in a downward trend.
USD / JPY
The USD is in an upward trend
Gold
Gold is bottoming; support is seen at 1200 USD
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WTI Oil
WTI Oil is in an upward trend
Overnight:
The DAX was able to profit from new all-time highs in US stock markets. Insecurities about the Italian referendum briefly faded in to the background. The DAX opened strongly, yet could not defend its gains by the end of trading. The DAX closed down 0.27%. Highest gaining stock of the day was Thyssen Krupp, rising 2.81%. Oppositely, Fresenius dropped 1.55%. Bond prices bounced back in European markets. In US markets, the Dow Jones rose 0.35%, breaching the 19000 level. Best performers in the S&P 500 were the US discounter Dollar Tree, whose quarterly numbers convinced investors. Asian stocks trend positive. The USD is unchanged. Gold is stable, while WTI Oil loses 0.52%.
Economic Data:
- 09:30: Germany: Markit / PMI Manufacturing
- 14:30: USA: Durable Goods Orders, Jobless Claims
- 16:00: USA: New Home Sales, University of Michigan / Consumer Confidence
Quarterly Results:
- Germany: Infineon
- USA: Deere
RoboForex Analytical Department
Article By RoboForex.com
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
