OIL touches 15 month high, EUR at 3 month low ahead of ECB today.

Today’s main news include the ECB rate announcement which is widely expected to keep rates unchanged as well as the bond buying program which currently is at 80 bln EUR a month until March 2017. ECB President Mario Draghi is also expected to announce that QE could be extended in December until the end of the year, not until March though. In the US, initial jobless claims are due out, which continue to be very low – currently at the lowest level since the 70s – indicating a healthy labor market. UK will release Retail Sales, which is the last major release before GDP next week. Markets price in a 60% probability of a Fed hike by year-end.

Currencies: EURUSD posted new 3 month lows yesterday ahead of the ECB meeting today. A break of 1.0950 could pave the way for further drop. Meanwhile the Mexican Peso gained further following last night’s 3rd and last Presidential Debate as Donald Trump once again lost the debate, as polls showed. After 2 days of gains for the GBPUSD which saw the pair trade over 1.2300, Sterling was steady at 1.2280 ahead of Teresa May’s first EU summit. Elsewhere, the resilient AUDUSD dropped after touching a high of 0.7735 following a surprise drop in Australian employment in September. .

Stocks: Asian Stocks advanced further today, boosted by their US counterpart’s performance. Nikkei closed 1.27% after SP500 and the Dow closed 0.2% higher. Today, DAX has opened higher, while French CAC posted a monthly high at 4535.

Oil and Gold: Oil inventory data showed that inventories fell 5.25 million barrels. As a result, both BRT and WTI oil climbed, with the latter posting 15 month highs at $52.20 a barrel. Today, prices have eased a little on profit taking following yesterday’s rally. The Organization of the Petroleum Exporting Countries (OPEC) plans to meet on Nov. 30 and hopes to decide on a half a million to 1 million barrels per day oil production cut, and the producer cartel hopes that non-OPEC exporters, especially Russia, will cooperate. Gold jumped slightly after a continuous downtrend ahead of the ECB monetary policy meeting. It is currently trading around $1270. The yellow metal climbed to the highest level in 2 weeks. On the higher side, major resistance is around $1274.28. Gold’s major support is around $1240.

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