The market is eyeing the start of the G20 Summit, which is set to open its gates today. This is the 17th event, and it is held in Bali, Indonesia. Presidents Joe Biden and Xi Jinping have met ahead of the event to discuss the China-US relationship, while Prime Minister Justin Trudeau announced that Canada will provide Ukraine with CAD 500 million in aid as it strengthens its stance against Russia. Despite the tension, it is hoped that powerful leaders will meet and discuss how to address the ever-increasing risk of a worldwide recession.
Japan's GDP for Q3 reported way below forecasted levels despite positive growth in the last two quarters. The Nikkei 225 has yet to react, but it is expected to struggle as the market dropped 1.06% ahead of the announcement.
Energy demand is expected to be higher entering the end of the year, with the temperature forecast in the UK to drop as low as 4 degrees Celsius. China also relaxes regulations by eliminating COVID flight restrictions.
The EURUSD is consolidating at the top after an almost 4% jump last week as CPI data was weaker than expected. USDJPY is not volatile despite the weak Japanese GDP Q3 report, while GBPJPY is gaining traction after already gaining half a percent in the first few hours.
The collapse of FTX and other crypto exchanges may turn investors' heads, even the largest ones, back to a more tangible form of money. On the hourly chart, gold prices are now aligning with Elliott Wave Theory and entering the corrective phase.
China's industrial production was lower than projected at 5%, but next month is expected to be somewhat higher due to the announcement of a more lenient COVID policy.
Regulations in the crypto space have been more active than ever with the fall of FTX, the on-going Ripple lawsuit, and the liquidity crisis, as investors are being recommended to pull their money from this alternative money system.
TECHNICAL OUTLOOK AND REVIEW
UKOIL: Price action suggest that the price is moving in a short-term downtrend with a pullback from sellers taking profit. Immediate support level is set at 91.87 which if the price breaks, it will plunge further. In case of a bull run, the price will be met with some resistance at 94.23 level and 95.06. It is likely to go beyond for the time being, but anything is possible once reports from G20 Summit is announced.