Our Picks

GBP/USD PRICE, NEWS AND ANALYSIS:
GBP/USD continues to hover around the support line of a downward-sloping channel connecting the lower lows in place since mid-April.
So far it has notably failed to benefit from receding fears about the Omicron variant of the coronavirus and it looks increasingly likely that the previous support line is now acting as resistance.

“Is there a best time frame to trade forex?” is a common question a lot of traders ask, especially those new to the forex market. The truth is, there is no single answer. It all depends on your preferred trading strategy and style.

GOLD PRICE (XAU/USD), CHART, AND ANALYSIS:
Gold traders are watching from the sidelines as other risk assets dominate trade.
‘Encouraging’ news on Omicron lures risk-on buyers.
Retail traders have increased their net-short positions.

GBP/USD PRICE, NEWS AND ANALYSIS:
GBP is currently steady against both the US Dollar and the Euro but GBP/USD remains close to trendline support and would likely drop much further if that beaks.
A UK interest rate increase by the Bank of England next week is now around 50/50 as concerns about Omicron make a rate rise less likely.

Forex liquidity allows for ease of trade, making the market popular among traders. However, certain variances in the FX market need to be taken into consideration for liquidity purposes. This article will explain the concept of forex liquidity as well as liquidity risk, ultimately seeking to provide an overall understanding of how liquidity affects trading.

US DOLLAR TECHNICAL OUTLOOK:
DXY walking the line on slope support from June.
Still looking for a reason to move off the line.

MANAGING FEAR AND GREED WHILE TRADING: MAIN TALKING POINTS:
Fear and greed are two drivers that influence our everyday lives.
These influences carry over to trading and can be detrimental.
Traders can remove these drivers by looking at the big picture and planning ahead.

This week sees Chinese and US CPI, along with the German ZEW index and rate decisions from the RBA and Bank of Canada. Much of the focus remains on the rise in prices globally, but also on the potential spread of the Omicrom variant. Corporate data includes the end of US earnings season, including Oracle, and a trading statement in the UK from Rolls Royce.

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 6th December 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 

If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

 

MetaTrader 4 help: Charts Customization.
Appearance and properties of each chart in the terminal can be set up individually.

BRENT CRUDE OIL AFTER OPEC+ MEETING:
Brent crude oil’s sharp sell-off and recovery after OPEC+ stick with January plan but reserve the right to alter the decision.
Oil recovers from sharp sell-off as key long-term trendline remains intact.
IG Client Sentiment ‘mixed’ once more despite even larger net long positioning than previously.

LONDON — European markets moved higher on Friday, looking for a positive end to a tumultuous week following the discovery of the new omicron Covid-19 variant.

DOW, NASDAQ 100, S&P 500, DOLLAR AND NFPS TALKING POINTS:
Following Wednesday’s broad risk tumble, the Dow, S&P 500 and Nasdaq put in for a stiff bounce this past session.
Volatility is the dangerous undercurrent that persists, so a steady course through the final day of trade this week could go far towards restoring ‘seasonal’ norms.
Top event risk from a headlines perspective Friday is the November NFPs, but I place greater weight on the ISM services update as the yield curve slides.

EUR/USD TALKING POINTS:
EUR/USD calmer ahead of US NFP data and Euro sentiment data next week.
The currency pair looks to test key resistance (prior support).
IG Client Sentiment ‘mixed’ despite significant net long positioning.

Turkish Lira Analysis and News:
Unorthodox Monetary Policy View to See TRY Remain in a Downward Spiral.
Turkish Lira Implied Volatility Highest Since 2018 Currency Crisis.
Spain Most Exposed to Turkish Lira Weakness.

GBP/USD price, news and analysis:
GBP/USD weakness looks set to continue as the financial markets remain jittery after news that the first case of the Omicron variant of Covid-19 in the US has been found, suggesting it is still spreading.
A hawkish Federal Reserve chair, who has reiterated that a faster taper of US stimulus than previously expected is now on the cards, is not helping either.

U.S. INDICES TECHNICAL HIGHLIGHTS:
S&P 500 rolling over towards old high, support.
Dow Jones about to test the 200-day moving average.
Dow Jones weaker, may test prior summer record high.

GBP/USD PRICE, CHART, AND ANALYSIS:
Fed chair Jerome Powell rattled GBP/USD lower on Tuesday.
A pattern of lower highs and lower lows remains in place.

EUR/GBP PRICE, NEWS AND ANALYSIS:
EUR/GBP will likely slip back after its rally over the past few days as the Euro was boosted by concerns about the Omicron variant of Covid-19 and whether existing vaccines will be effective against it.
Meanwhile, a reshuffle of the UK Labour Party’s shadow Cabinet should have little impact on GBP even though opinion polls show Labour neck-and-neck with the ruling Conservatives.

CRUDE OIL, WTI, AUD/USD, CHINA PMI, MSCI, NIKKEI 225 - TALKING POINTS:
Crude oil prices tanked as risk-off sentiment resumed in Asia today.
APAC equities were doing ok until a report questioned the efficacy of vaccines.
OPEC+ could be a non-event on Thursday now. Will crude continue lower?

S&P 500, NASDAQ 100, DOW, COVID AND DOLLAR TALKING POINTS:
The S&P 500 led ‘risk assets’ on a broad slump in sentiment this past Friday which found fundamental blame in news of the Omicron Covid variant.
Markets made a bid to recovery this past session, but the Dow and the DAX didn’t seem to muster the same enthusiasm as speculative favorites like the SPX and Nasdaq.
A full recovery in risk trends is almost assumed given seasonal conditions and post-Covid momentum, but the Dollar may offer a more insightful nuance.

Powell’s reaction could bring renewed volatility for the dollar which has lost ground on a potential shift in Fed outlook.

Source: Bloomberg

RAND ANALYSIS:
Rand market frenzy fades as market mulls over new variant.
Commodities revised lower as uncertainty emerges.
Bearish harami suggests short-term USD/ZAR downside correction.

Key events this week include Chinese PMIs and the monthly US ADP and NFP job reports. An OPEC meeting will also be worth monitoring for any potential impact on the oil price. It is a sparse earnings calendar overall, and with the new Covid variant from South Africa causing major concern it may be that all other data points are pushed into the background as markets attempt to price in the potential for a widespread return of restrictions and a likely hit to economic growth.

Hello IG Community,
The IG Charts Request Poll will be closing and ending on the 30th November 2021.