Daily Update
The week commences with a speech from ECB’s Mario Draghi which is most like to cause some volatility in the FX market as investors and press will be looking for fresh impetus. In the FOMC minutes that took place on Wednesday, most FED’s officials said that there will be a rate hike which could be the reason to the negative pressure on the USD causing the EUR/AED to strengthen by 1% at the time of opening. However the pair can still be volatile due to the upcoming events such as the referendum and the election happening in Italy. USD is likely to remain underpinned in the day ahead as the US treasury yields continue to extend its weakness across the curve, which will eventually keep a check on the USD’s recovery. Most likely the ECB and FEDS meeting that is to take place on Dec 4th will set the tone for the pair’s initial quarter of 2017. OPEC consultations ended in doubt over the output cut deal as Saudi Arabia’s energy minister pulling out last minute because Iran refused to cap oil outputs at its current levels. Therefore a verdict will be reached later this week which might shatter investors’ confidence and cause USD to get affected by negative pressures. Since the Investor confidence is on a tipping scale in terms of risky assets, the demand for safe havens like JPY might be increased. Today’s Market
Today’s Focus
