› Market review, November 27 - December 1, 2017

Market review, November 27 - December 1, 2017

GOLD

The price of the yellow metal is depends heavily upon on the value of the American currency.
And often, the factors affecting the strength of the US currency lead to gold losing its value. Over the past week, the factors causing the growth and fall of the dollar replaced each other in alternation and this has put pressure on the gold from two sides at the same time.
In the November report, the FOMC expressed optimism about economic growth, and most participants expressed their belief in the need for an early interest rate increase, which investors perceived to be "this year."
On the background of these news, gold began to strengthen. But still, it did not succeed to reach new heights and after a retracement from a level of $1’291, the yellow metal began to cheapen and during the holiday days of Thursday and Friday, it almost did not change in value at all.
And yet, traders who opened long positions at the beginning of the week were the winners.
The coming week will not bring important economic news, and, quite probably, we should not expect the gold to break through the upper levels of resistance.


Market review, November 27 - December 1, 2017


Bitcoin

One of the undoubted advantages of working with crypto-currencies is the possibility of trading during the weekends, as trading on most other assets, with rare exceptions, is not available.
Last week, Bitcoin broke above the level of $7’858, which is now a new level of support. This asset did not show a record growth or decline, as noted weeks before.
A narrow range of trades, in part, was caused by a decrease in the activity of investors from the US, due to the celebration of Thanksgiving.
And yet, despite the lateral movement of the last week, the trend of trading on the crypto currency remains rising and the level of $9’018 seems to be the current new goal.


Market review, November 27 - December 1, 2017


EUR / USD

The main currency pair of the financial market at the beginning of a new trading week is characterized with another trend.
On one hand, we have confident and strong data from Europe, on the other - an overly cautious tone on the Fed's monetary policy issues, gives a strong impulse for an upward trend towards new heights - if the market does not find a new driver for the dollar, which will help the American out of the drawdown, of course.
If we look from different angles, then from the point of view of the fundamental factors nothing critical has happened in the US, and the main reason for the decline in the dollar was the fears of Fed officials about a possible drop in inflation due to an aggressive tightening of monetary policy.
As for the technical analysis, at this stage EUR / USD is testing the key level 1.20, which is a strong level of resistance, from which one has to open new positions.


Market review, November 27 - December 1, 2017


GBP / USD

After not so successful week for the US dollar, which helped the British Pound and virtually all assets recover lost positions, this Saturday at the Eastern Partnership Summit, in Brussels, there was a meeting between British Prime Minister Theresa May, and the chairman of the European Council, Donald Tusk.
The goal of this meeting was a mutual agreement on further action to address Brexit, negotiations on which have reached a dead end. The main problem of uncertainty is represented by two main factors.
The first of these is the financial obligation of Britain, and no less important factor is the border with Ireland. Ireland, being against the exit of the UK from the Eurozone, has announced a referendum on the autonomy from Britain.
Although the notes of the meeting were generally positive, the issues that Britain must solve are really complex, and it will take quite a lot of effort to solve them. Therefore, this week, we expect a correction in the movement of the British.


Market review, November 27 - December 1, 2017


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