3 Things You Need To Know About Today’s Markets
Friday, December 1
1. Canadian GDP And Employment Change To Give Future Rate Clues
The Canadian dollar (CAD) noted a very impressive May-September uptrend as Canada’s job markets remained strong. However, concerns over challenging NAFTA renegotiations and a stronger US dollar have put a lid on CAD gains. Undeniably, the Canadian economy has seen significant growth in recent months as the Bank of Canada raised rates two times this year and signaled that further rate hikes would be data-dependent. This is why today’s GDP and Employment Change data are crucial for investors. The new data will be released at 13:30 and they will be watched closely for a clearer indication as to the strength of the Canadian economy and whether further rate hikes can be expected in the near term. Canadian GDP has expanded in the first and second quarter. However, this rapid pace is expected to have slowed in the third quarter and forecasts point to a 1.6% expansion in the three months to September.*
2. Gold Trades Near 3-Week Low
Gold held near a 3-week low in early morning trading on Friday, after a lack of clear drivers has kept gold well under $1,300 an ounce throughout November. It should be noted that gold prices were also pressured by upbeat U.S. growth data for the third quarter and a bullish view of the economy by Federal Reserve chair Janet Yellen. Yellen’s comments have pointed to more future rate hikes which would in turn keep pressure on gold prices as investors will seek returns in assets other than non-interest bearing bullion. A stronger dollar also pushes gold prices lower as it makes bullion more expensive to buy and hold for foreign investors. The USD steadied against the yen on Friday, after rising to a 10-day high, as the market endured the wait for a vote on a U.S. tax reform bill.**
3. OPEC Agrees To Extend Oil Production Cuts Into Next Year
Oil leaders agreed to extend production cuts until the end of next year on Thursday. The uncharacteristically united OPEC front was hailed by investors who sought to buy USOIL, pushing prices higher. Earlier this year, the oil cartel agreed cut 1.8 million barrels per day, in an attempt to stabilize prices. As a result of the recent oil cuts, USOIL has rallied to its highest point in 2.5 years in recent months.***
You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.
*Source: Bloomberg
**Source: Investing.com
***Source: CNBC
