The anticipation of the Doha meeting had been building up for the past week and it seems as though traders were right to be cautious. As seems to be the case at meetings involving OPEC countries in recent times, there was a long slog throughout the day resulting in no agreement on a production freeze amongst several of the world’s largest oil producers. Saudi Arabia dashed hopes of an agreement as it refused to take part whilst Iran was not involved. Now markets need to deal with the fallout from Doha. The oil price has been rallying in recent weeks in anticipation of a potential agreement but now with nothing in place will there need to be a re-pricing across financial markets? This has the potential to impact across not only oil, but also other commodities such as gold, foreign exchange and also equities. Correlations between markets could have a key role to play, whilst volatility could once more be a significant negative impact.
We take a look at the market fallout from the Doha meeting, but also consider the economic events that need to be watched in the coming days (including a monetary policy meeting for the European Central Bank).
What are the key factors to watch in the forex markets this week as the movement on the US dollar continues to be a key factor for major pairs. There is also a technical analysis appraisal of Euro/Dollar and Dollar/Yen charts. There are several aspects impacting on equity markets, with the outcomes from Doha needing to be priced in, however we are beginning to get into the announcements of US earnings season will be key for traders. There is also a technical analysis of the German DAX Xetra and FTSE 100. Finally, where does Doha leave the key commodities markets and bonds? We finish with a technical analysis of Gold and Brent Crude oil.