Currencies
EUR/USD – was on its way to test the support around the 1.117 level, but moved up before reaching that level due to the announced OPEC agreement to freeze and slightly cut production. Today we have US data and also data out of Germany.
USD/JPY – has been moving up and has just crossed the resistance around the 101.26 level to the upwards trend line which it has to deal with now. The move comes as there is some more willingness for risk in the market due to the OPEC decision to cut oil, as that is likely to lift inflation.
GBP/USD – has been moving up and it trying to break through the downwards trend line on the 4 hour chart. We will be looking at the US data today, mainly the GDP to see if there are any surprises.
AUD/USD – moved also up due to the OPEC agreement, and we can see that we are trading in a wedge on the 1 hour chart.
USD/CAD – with OPEC announcing an agreement was reached which resulted in oil to move sharply up, we saw a large drop and a strengthening of the CAD. We broke below the 1.312 level, but remain still relatively far from the 1.30 level, even though we reached that level 2 weeks ago when oil reached a slightly lower level than it is trading at now.
Indices
S&P 500 – moved convincingly up, boosted by the energy sector after oil rose considerably on the backdrop of the announced OPEC agreement. However, we can see that we are now back trading at the resistance around the 2167 level.
Commodities
Gold – continued to move lower to the lowest level in a week, but after the OPEC agreement lifted the oil price, gold also moved up a little bit from the lower levels for the day.
Oil – moved sharply up and crossed the resistance level around the 45.80 level with ease after OPEC was able to reach an agreement. Inventories in the US meanwhile showed a much larger drawdown than expected, and again large difference with the API data of the previous day. Even though oil rallied at first on the drawdown and also the slightly lower production, an increase in gasoline inventories was able to keep the gains in check and even caused oil to move lower, until it became clear that OPEC would be reaching an agreement. A more in depth look at the agreement will follow later.