Yesterday’s focus was surrounding the formal meeting of OPEC members in Vienna. Negotiations led to members freezing production at 32.5m barrels per day, which was towards the lower end of the economists’ forecast. Crude oil rose to nearly 7% throughout the day, as the cut in production was seen positive for oil. Ruble, Peso and Krone in the FX market lead to gains after the news.
The economic docket was also jam packed yesterday as high tier data was released from the US and Eurozone. The Eurozone inflation rose as expected to 0.6% for the year. Shortly after, the US released their ADP Non-Farm Employment Change which continued the bullish data trend of late, exceeding economists’ consensus at 216k. The bullish figure bodes well for tomorrow’s pivotal Non-Farm Payroll.
As always, with the first Friday of the new month, the US labour data comes into the spotlight. The release of the all-important Non-Farm employment figure will be looked into for more evidence to see if the Fed will pull the trigger on the December 14th. Unemployment is expected to remain at 4.9%, but average earnings on the month is likely to show a decrease to 0.2% from 0.4%. Construction PMI from the UK is posted today morning and is forecasted to remain in expansion territory.