05.12.2013- OPEC has left the quotas unchanged
American stock markets have shown mixed performance and ended the day near the previous close levels. The movement of indexes was influenced by data on the index of business activity in the U.S. service sector. According to the Institute of Supply Management index has fallen to 53.9 with expectations of 55.4. Home sales came out better than expected. In October, has been sold 444 thousands houses, expected figures were near 432 thousands. This growth was the highest in more than 30 years. Decline in sales in the non-food field led to a drop in retail sales in the euro area. Sales fell for 0.2% against projected growth 0.2%. Eurozone GDP growth has met expectations. During the third quarter the economy of the currency bloc grew by 0.1%. PMI came out better - 51.2 against 50.9 in October. As a result of controversial statistics, we saw quite volatile trading session for the pair EUR/USD. Now the price is consolidating near the level 1.36. Growth is limited by a local maximum at around 1.3620. Further progress will depend on the interest rate decision of the ECB (12:45 GMT) and the speech of ECB President Mario Dragi during a press conference (13:30 GMT). The British pound continues to consolidate within the local rising channel. Strengthening of the British currency was associated with weak data in America. Investors expect the interest rate decision from the Bank of England (12:00 GMT). We do not anticipate the revision of the monetary policy in the country. More impact on the stock will have a statement of the Bank of England on the results meeting of the Monetary Policy Committee. At the previous meeting of the committee, its members announced that central bank is not going to raise rates until the unemployment rate will reach 7%. Now the price of GBP/USD pair is inside the rising channel and continues to consolidate. Support levels are at 1.6335 and 1.6250. Growth is limited by local maximum 1.6440. The Australian dollar continued to decline, but failed to overcome the level of 0.90. Australia's trade balance for October was worse than expected. Negative balance has made -0.53 billion at the forecast -0.38 billion Soft monetary policy stimulates further decrease of currency. The target price for Australian dollar is 0.89. In case of correction the quotes can increase to 0.9140. The price of USD/JPY have broken the lower border of the rising channel. Weakening of the dollar has played on hand of bears. Further movement of the pair will be determined after the publication of the data on the U.S. labor market, which will take place on Friday. Strong support level is at 101.30. Growth is limited by the level of local maximum 103.40. Prices for North Sea benchmark Brent crude oil fell after OPEC meeting. Cartel decided not to change oil production quotas. At the same time the cost of barrel of Light Sweet crude oil rose slightly. According to report on oil in the U.S., the inventories have fallen by 5.6 million barrels. Analysts predicted a decline of 0.5 million barrels. We retain a long-term bearish outlook for the price of oil. Pressure on quotes remains because of possibility of reduction of quantitative easing in the U.S., canceled sanctions against Iran and as a result increase of the supply of oil on the world market, the substitution of oil by natural gas in some segments of the economy and the increase in oil production due to the development of new technologies such as hydraulic fracturing and horizontal drilling. The nearest resistance level for Light Sweet crude oil is 98.70. Support is at 95.20. Gold recovered some losses received yesterday. Growth was limited by the inclined resistance level. Further progress will be determined after the publication of data on the U.S. GDP (13:30 GMT) and labor market in U.S. (Friday). Now the quotes are under the pressure of low demand for physical gold and possible reduction of the quantitative easing program. In case of further reduction the target levels are 1200 and 1180.