The Week Ahead – Global continuation

UKOIL steadies as worries ease

Brent avoided a slide below 70.00, which was supported by further tensions in the Middle East. The market failed to show any reaction as OPEC+ delayed its meeting by four days. The organisation for petroleum exporting has kept production cuts in place to help keep prices stable due to weak global demand. The focus is on geopolitical concerns, which could keep the price above 74.00. 72.00 is the immediate support. Oil price trends will continue to be influenced by these developments.

EURUSD recovery remains limited

America took a breather at the end of last week as the US markets closed for the Thanksgiving holiday on Thursday. Shortened trading hours on Friday saw the market a bit less volatile but still had some room for manoeuvre. Annualised GDP grew in the third quarter, but all eyes will be on this week’s NFP data as the Fed weighs up another rate cut. As traders expect at least another 25% cut this month, the pair could fall below 1.0450, with 1.0600 as a close resistance.

SPX 500 another record close

US indices were in a buoyant mood after rallying in recent sessions. The sticking point for the S&P looks to be the 6000 level, which it has failed to make a clean break above it. With stocks still looking bullish after last week’s holiday, it will be up to progressive bullish sentiment to move the S&P higher as we move into the final month of the year. 6080 is the first hurdle to clear, and 5800 is a crucial support.

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