Spotlight Falls on the NFPs, OPEC+ Agrees to Increase Output

Market Participants Cautious Ahead of the NFPs

The US dollar continued trading lower against all but one of the other G10 currencies on Thursday and during the Asian session Friday. It gained marginally only versus NZD, while it lost the most ground against CAD, JPY, and GBP in that order.

DJIA — Technical Outlook

Although the DJIA index continues to make higher lows, it is still struggling with overcoming its key resistance area between the 30107 and 30215 levels, marked near the high of November 9th and the all-time high on our cash index, respectively. We could see the index correcting a bit lower, but if it is able to remain above a short-term upside support line taken from the low of November 12th, we will stay positive, at least for now.

EUR/USD — Technical Outlook

EUR/USD continues to drift higher, while balancing above a short-term tentative upside support line drawn from the low of November 23rd. After a good run to the upside this week, the pair found some resistance near the 1.2175 barrier, from which it corrected slightly lower. There is a possibility to see a bit more correction to the downside, however, if EUR/USD remains somewhere above the 1.2100 zone, the bulls might step in again and take advantage of the lower rate. We will take a somewhat positive approach, at least for now.

OPEC and Allies Increase Output by 500k Bpd

Now, passing the ball to the energy market, oil prices traded higher yesterday, something that may have also helped the Canadian dollar to take the first place among the G10 gainers. Strangely, both Brent and WTI spiked higher overnight, after OPEC and its allies agreed to slightly increase production, by 500k bpd from January, even as they failed to reach common ground on a longer-term policy. This means that the group will now be cutting production by 7.2mn bpd, instead of the previous 7.7mn cuts.

As for the Rest of Today’s Events

During the European trading, we get the UK construction PMI for November, which is expected to have declined to 52.0 from 53.1.

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