Market Snapshot – Markets Choppy At Beginning of Week

The markets have been mixed today, as the dollar seems to be getting back some of its strength across certain pairs after the pounding that it had received at the hands of the market over the last week. It remains to be seen whether this is just a temporary relief for the dollar at the beginning of the week or whether this would be the same in the short term. The FOMC meeting minutes are scheduled to be released in the middle of the week and this could sway the dollar as well.

Stock Markets Are Mixed

The stock markets have been mixed as well, as a reflection of the confusion and the consolidation that is prevailing in the markets as of now. It has to be said that this is pretty much normal at the beginning of the week as there has not been much news over the weekend. The UK markets have been subdued as is the pound, which is under pressure as of this writing. We will have to see whether the US stock markets give us direction when they open for the day.

Oil Prices Continue Higher

The oil prices received a boost over the weekend on news that the OPEC producers might bring in a much larger production cut deal this week. This is in addition to the extension of the production cut deal to the beginning of next year, which is what the markets widely expect. Since this morning, we have seen the oil prices move steadily higher on such expectations and we could see the oil prices rocket even more if this turns out to be true.

Gold Prices Remain Stable

The gold prices continued to consolidate and trade within a tight range as the markets await direction at the beginning of the week. The risks and the fears that dominated the markets last week seem to be receding slowly as time wears on and the markets now await the next set of news to determine the next short term direction.