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A special week ends in a special way

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What a week it was! ECB, NFP, OPEC…and FED is still on the horizon! At the end of a volatile week, the biggest economic release came from the US in the form of November’s NFP which came in higher than expectations at 211k. This is the second consecutive print over 200k and actually included an upward revision to last months number moving higher to 298K. The biggest mover was gold, which surprisingly surged higher despite the data seemingly increasing the chances of a Fed rate hike this month. However, the dollar get a beating as the short squeeze continued.

The employment picture for Canada wasn’t quite as strong as the print came in negative, significantly below expectations. The other main news event this afternoon came from the biannual OPEC meeting where the council announced no change to the production level.

European markets closed in the red, but perhaps crucially didn’t close below yesterday’s lows. The Dax was pretty much unchanged as well as the Eurostoxx 50. The FTSE had a worse day losing 36 ticks on the day to end the week at 6238. The picture across the pond is somewhat more rosy as US stock markets have enjoyed a bullish end to the week. The economy expands, and a big help came from Mario Draghi, who said that the ECB will act if needed and that there are no limits for the ECB.

As for commodities the biggest mover was Silver whilst Gold also ended the firmly in the Green. For Crude products the outcome of the OPEC meeting, where they once more decided to keep production on hold at current levels, saw some heavy selling. Both WTI and Brent were trading positively this morning however the failure to cut supply has seen them both move into the red. What’s more, the oil haven’t got a help from the rig count data. Although the number of active rigs has fallen again, oil prices continue to plunge.

Looking forward to next week we have rate decisions from the Royal Bank of New Zealand and the Bank of England on Wednesday and Thursday respectively. BOE is expected to keep rates on hold, but there is a chance for a move from the RBNZ.

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