Forex forecast for the week 21-25.11.2016: Investors - sell oil!

20 ноября 2016 - Fx4News

The forecast for the week November 21-25 :

Gold XAU / USD forecast for the week November 21.25

Gold has lost two trading weeks in investor demand. On the new week, reducing the metal quotations likely to continue

First, it is worth noting the strong growth of greenbacks in the currency market: since gold and the dollar traded in different directions, the further strengthening of the dollar, amid rising yields on Treasury bonds, quotes will push gold down. Ten-year US Treasury debt instruments involve yield of 2.35%, this is the maximum for the last year. Do not leave without attention and the fact that the stock exchanges in the United States and Japan, on the background of the weakness of the yen continued to move up, it is a negative factor for gold. The precious metal, as well as the yen, safe asset, and the high demand for equity markets negatively affects both instruments. The S & P500 is trading near historic highs, and at the upcoming week's worth waiting for overcoming this milestone.

Gold recommendation: Sell 1215/1230 with a view to take profit 1192.

Brent oil forecast for the week 21-25 November

Two reasons for investors to wait for decline in oil prices:

The first reason , release oil services company Baker Hughes gives a signal that investors can see the growth in US oil inventories.Baker Hughes has reported an increase in the number of drilling rigs in North America: the United States on 19 units in Canada by 11 units in Mexico and 2 units, respectively. It is worth noting that in the United States by 7 units increased the number of vertical installations, for which there is a high percentage of oil recovery. Thus, production growth will have a negative impact on share prices, as supply increases and demand remains unchanged, showing minor fluctuations.

The second reason , the strong growth in the Forex greenbacks will have a negative impact on oil over the past two weeks, the dollar index basket USDX gained 4.45%, while Brent crude oil for this period has strengthened by 2.7%. There rasskorelyatsiya and this dynamic usually ends strong bubbled sales on the market of black gold.

Oil recommendations : Sell 47,70 / 48,40 for the purpose of take profit 44,00.

S & P500 Index forecast for the week 21-25 November

According to the index for investors was an interesting situation. On the one hand, a positive report on retail sales and construction sector from the United States, signaled an increase in consumer activity. The new week will not be so rich in vital statistics is to provide two reports: on Tuesday the sale of housing on the secondary market and on Wednesday orders for durable goods. Given the growth in consumer activity can be expected to yield data better than expected medians that allow investors to update the historical maximum on the index (2194.4). Perhaps the psychological level of 2200 will be a strong barrier due to the significant increase of yield on US Treasury bonds. Since the beginning of the month the yield on ten-year jumped 0.52%, while the S & P500 index rose by 2.8% and yet ignores the dynamics. But how long this will not last, and in the near future is expected correction on the stock market.

S & P500 Index recommendation : Sell 2200/2215 with a view to take profit in 2167.