The Week Ahead – A New Beginning

UKOIL subdued as growth forecasts are back in focus

UK Oil prices are holding firm following the recent decline, which saw over $10 wiped off the value from last month. A stronger US Dollar and hopes of a Middle East peace deal weighed in on prices. Added to that, the potential impacts of a Trump Presidency could see price action spiral further lower. With OPEC cutting oil demand growth forecasts for next year, citing concerns about the Chinese economy could add more pressure to the black gold. The price has found support at 72.00, and 75.50 is the next obstacle.

EURUSD looking for parity

The greenback continued to progress after last week’s CPI reading failed to stop the bullish rally. The Euro continues to attract sellers as traders struggle to find reasons to buy the currency, leaving the pair at the mercy of the Dollar’s fundamentals. The yearly highs of the pair just a few weeks ago seem a long way away, as a break at 1.0500 could send the pair on its way to parity. 1.0650 is needed to stop the slide further.

SPX 500 struggles to extend record

The S&P fell for the first time since the presidential election as bond yields spiked as inflation failed to touch the Fed’s targeted 2% level. Most of the major S&P 500 sectors were lower as bond yields jumped higher. With the index hitting record after record, traders will be wondering how long this can sustain, with a possible correction just around the corner. The index holds above 5,800, with 6000 being the resistance to crack.

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