Friday Profit-Taking & Market Respite After Massive Selloff

Friday profit-taking and market respite forces market participants to reconsider their positions after the massive selloff.
The viral arrest on Ms. Sabrina Meng, CFO, of Huawei was seen by seasoned investors as a distraction or addition to volatility. Since here detention was on the 1st of December and not yesterday.
The USD remains broadly supported as the GBP and EUR attempt to climb up ahead of Today’s US Non- Farm Payrolls (NFP) and EU Gross Domestic Product (GDP) reports. Analysts think their upside movement is limited to current resistance levels i.e. 1.1385 for the EUR/USD & 1.2796 for the GBP/USD pair.
Furthermore, market participants are paying close attention for further development in the OPEC & OPEC + agreement to curb production and Oil prices. Russia contribution beckoned.
The Automatic Data Processing (ADP) report on Thursday missed expectations, 179k vs the forecasted 196k. The apparent weakness in the USD was compensated for by a good ISM number and prospects of a rate hike remain on tap.
Crude oil inventories reported revealed a drop of almost
7.4million barrels for the week, however, with Gasoline inventories swelling 1.699 million barrels’ prices remained under pressure.
Global Markets:
Global stocks recover from the dramatic selloff triggered Thursday. Asia closed relatively bullish. EU stocks seek to carry on hawkish wings at least until other news halts up trends

• US 30: Although with a dovish outlook the asset oscillates between 24,706.0 – 24,978.5 after slipping nearly 800 pips
• UK100: Is poised on making up for recent selloff yet below the 7k psychological levels. Up 1.47% at the time of print 09:50GMT. Trading between 6,739.25 – 6,815.56
• Italy40: is up 0.98% rallying from 18,762.49-18,867.60 or beyond
• Germany 30: Following up from Thursday the asset did fall to 10,810.98 in line with our projections it is recovery from an almost 4% drop. Up 0.99% at 10,917.73 heading for 10,925.80 & beyond.

FX Markets:

• EUR/USD: trades in a range from 1.1360 – 1.1383 attempting to stage a comeback
• GBP/USD: remains volatile swing between 1.2734 – 1.2795 with a desire to cross the 1.28 resistance line.
• USD/JPY: Upon reaching 112.83 the USD begins to gain traction up 0.14% vs the Yen at 112.84 aiming for 112.93 or 113.

Commodities:

• Oil: Remains politically charged trading sideways between 50.61 – 51.76 in anticipation of a propeller for now gravity is heavy ahead of the Baker Hughes Rig Count.
• GOLD: As uncertainties prevail some investors are finding the precious metal attractive. Gold was seen at 1,245.65 targeting 1,246.60 as it resistance.

The Five companies reporting their earnings today may not have any significant impact on the market.
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Related Links:
https://www.cnbc.com/2018/12/07/opec-meeting-saudi-arabia-and-russia-look-to-impose-production-cuts.html
https://www.cnbc.com/2018/12/07/mays-brexit-vote-could-plunge-the-uk-into-fresh-political-chaos.html
https://uk.investing.com/analysis/opec-summit-preview-supply-cuts-consensus-is-anything-but-guaranteed-200205048