Market dynamics: currencies and commodities (03.12.2018)


Hello! And welcome to InstaForex TV channel. The economic news will be presented by us,-Anna Kasatkina And Takhmina Salomova. You are watching the overview of the currency and commodity markets for last week. So, in what currencies did investors prefer to put in their funds? The US dollar strengthened last Friday. What was the reason behind these moves? Markets nervously awaited the outcome of talks between the leaders of the world’s two biggest economies last weekend. Investors appeared to favor holding the US currency — the euro was down by over two-thirds of a percent at $1.1312. For the week, the shared currency lost 26 points or 0.2%. And over the month of November the euro was little changed. Data on Friday showed growth in China’s vast manufacturing sector stalled for the first time in over two years in November as new orders slowed. The dollar index traded higher on Friday at 97.25 – off almost one-week lows of 96.626 hit on Thursday after comments from Federal Reserve chief Jerome Powell which prompted investors to question whether the U.S. central bank is nearing the end of its rate-hiking cycle. For the week the dollar index was up by 0.35 percent. But it was down by 0.13 percent in November. Meanwhile, bitcoin ended November down by 37 percent, its worst drop since April 2011. The world’s largest cryptocurrency hit a low of $3,878.66 on Friday after starting November above $6,300. The digital currency is now down by more than 70 percent since the start of 2018 and 80 percent from its all-time high hit late 2017. That is all about movements in the forex market. What trends were seen in commodity markets
last week? Crude oil lost ground, and gold was strong enough to finish last month in the green zone. Why did oil weaken? Traders’ concerns over a possible glut in global supplies. Crude prices tallied a drop of about 22% in November, the biggest monthly percentage loss in a decade as traders fretted over a possible glut in global supplies. Global benchmark January Brent crude which expired at the end of the session, lost 80 cents, or 1.3%, to $58.71 a barrel. It ended November down by around 22%. Bigger picture, Brent was down by about 12% so far this year, as surging oil production in the U.S., Russia and among key members of OPEC has helped to create a glut in global markets. On Friday, WTI crude for January delivery fell by 52 cents, or 1%, to settle at $50.93 a barrel after
trading as low as $49.65. The January contract rose by about 1% for the week. However, WTI prices plunged by roughly 22% in November. In gold trades, a decline in gold futures on Friday, on the back of strength in the dollar, pushed the metal down for the week, but prices still tallied a second straight monthly gain. Gold for February delivery shed by $4.40, or 0.4%, to settle at $1,226 an ounce, with the contract registering a weekly fall of nearly 0.3%. For the month, however, prices were up by about 0.9%. Prices had weakened in electronic trading late Thursday, shortly after minutes from shortly after minutes from the Federal Open Market Committee’s November monetary policy meeting revealed that every member of the committee was on board with lifting interest rates “fairly soon.” Anna, thank you for the review of the commodity market. You’ve watched the weekly review of foreign exchange and commodity markets on InstaForex TV channel. With us, –
Takhmina Salomova and Anna Kasatkina. Good luck and see you later! See you soon.

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