HomeArticlesMarket dynamics: currencies and commodities (26.11.2018)
Market dynamics: currencies and commodities (26.11.2018)
December 3, 2019
Good afternoon! Hello, and welcome to InstaForex economic news TV channel with us,- Takhmina Salomova and Anna Kasatkina. You are watching the currency and commodity market review for the last week. What changes took place in the foreign exchange
market throughout last week? The US dollar traded higher on Friday against the basket of major currencies. What triggered the purchases? US traders returned from the Thanksgiving holiday, and investors closely tracked an intensifying decline in crude oil. As for the greenback’s trade against major
rivals, the ICE U.S. Dollar Index was up by 0.1% at 96.830, headed for a 0.4% gain last week. At the same time, European markets continued worrying about Brexit developments ahead of a key summit last weekend. The euro was down at $1.1334, a five-day low, with a 60-point decline for the week. And the pound sterling last traded at $1.2804, down from $1.2878 seen on Thursday and mostly unchanged for the week. On the economic data front, November PMIs for the eurozone underperformed consensus estimates, with the composite index coming in at 52.4, versus 53 expected, which also weighed on the euro. Meanwhile, Bitcoin continued its move lower Friday, struggling to find footing after a week of pain for the world’s largest cryptocurrency. The digital currency hit a low of $4,119, according to data from CoinDesk, bringing its seven-day losses to more than 25 percent. In dollar terms, bitcoin’s value dropped by about $1,400 over that time frame. That was all about the current tendencies on Forex. What trends prevailed in the commodity market
last week? In commodity trades, the WTI crude oil market broke down significantly during the trading session on Friday, losing roughly 7% in the middle of it. Brent markets fared even worse from a percentage base during the day on Friday, slicing through the $60 level. The global oil benchmark, Brent for January delivery was down by nearly 5%. Growing output continues to weigh on the oil price. The price drop hurt financial assets acrossthe board, including stocks and commodity-linked currencies. Gold futures eased in Friday’s shortened
session, pulling back from Wednesday’s, pre-Thanksgiving two-week high. Still, the loss was slim enough to leave the precious metal just in the green for the week. Gold for December delivery on Comex fell by $4.80, or 0.4%, to settle at $1,223.20 an ounce. The metal rose by less than 0.1% for the week. Market focus remained on Federal Reserve interest-rate plans over coming months, the dollar’s response to rate moves, and China-U.S. trade discussions. The US Fed is widely expected to enact its fourth rate increase of 2018 in December, but investors have concerns over how many increases the central bank can implement next year without sparking a domestic recession, amid emerging signs of global economic weakness. The Fed has penciled in three more hikes for 2019. Takhmina, thank you for the commodity market review. You have been watching the weekly currency and commodity market review on InstaForex TV. It was presented to you by Anna Kasatkina and Takhmina Salomova. Have a great day! Good bye. See you!