There has been a massive chaos in the financial sector from the very beginning of the year 2016.Lots of major political and important pending fundamental issues were pending in the global market. Investors were in a doubt about the movement of the financial instrument in the market. Most of the professional traders remained on the sideline until the market gave a clear indication about its next move. The energy sector was pretty much unstable in the year 2016 since oil production rate was extreme and most of the leading oil producing countries in the world were going extreme level production per single day. However, the energy sector settled down to a great extent after the OPEC imposed an oil production cap to the leading oil producing countries in the world. Most of the leading oil production countries are now forced to limit their production to 1.2 million barrels per day which brought immense stability at the oil price. According to the leading researcher, such a drastic action by the OPEC is extremely promising as it safeguards the energy sectors in the global economy. But such a major decision was not implemented by the OPEC member till 2008 in the market and most of the traders are now safely trading rising price of oil. Though most of the countries readily accepted the terms of the OPEC member but some of the countries like Libya and the US is not adhering to the rules perfectly. The number oil rigs in the US has increased from 12 to 512 within a single year and this has created a doubt into the mind foreign investors regarding the next step of U.S government. But so far price has been stabilized in the oil industry and most of the oil traders are having a safe bullish ride in the pair.
The current performance of the U.S economy is significantly great and the mighty U.S dollar is trading higher against its all major rivals in the financial sectors. However, things went little sloppy in the last Friday trading session as the dollar slipped lower against its all major rivals in the market. The leading hedge firm and the economist are now doubting that the strength of the dollar has been absorbed by the market and the dollar needs a strong buying pressure at the current moment to continue its bullish move in the market. The year 2016 is almost finished and most of the trader have taken the profit out of the market. The market will tend to cease its volatility in the upcoming days and people are thinking that the market has nothing to offer to the traders in the recent weeks. However, in the upcoming week, we have plenty major fundamental news release against the Aussie dollar. So those who want to trade the market can trade the AUDUSD pair in the market. But you should remember that the long-term prevailing trend in the Aussie dollar is bearish and with the recent strength of the mighty green bucks it has broken the key low on the daily chart. Leading investors are waiting to sell this with minor retracement in the daily chart. However, if the major fundamental news releases come positive and go in favor of the Aussie dollar then we will see a strong bullish retracement in the AUDUSD pair. But till now nothing came in favor of the Aussie dollar as the Australian government already declared that are having a budget deficit in the market.
The year 2016 is near its end and most of the professional traders are thinking that all the major event have been completed for the year 2016.The rate hike decision by the FED has given the dollar significant amount of strength in the market. But in order to retain the ongoing strength, the FED needs at least three hikes in the next year. But in order to go for three hike plan the U.S government needs to do extremely well in all the economic sectors. This means they have outrun all the negative effect of their economy within n the shortest possible time. Moreover, the central bank will also create pressure to the FED for the rate hike since they know without a rate hike the economy will tumble in the global world. According to the leading economist researcher in the world, the dollar might face some hard times in the near 2017 since it’s under new reign of Mr. Donald Trump. However, Mr. trump has already created positive consumer sentiment in the market since he tends to increase the fiscal funding’s and going to initiate the tax cut. Such drastic event from the U.S government is definitely threatening to the global economy but investors are well aware of the fact that the dollar will sell off in the market if the FED fails to go for three consecutive rate hike in the next year. On the contrary, the price of all the precious metal is now currently trading at the critical support level and investors are fear that the price will be rebound from the current level as the dollar is most likely to weaken in the longer term. However, if the FED comes up with three rate hike in the next year then there will be no competitors for the dollar in the financial world and all its major rivals will be sinking down in the global market. So it’s better to wait for a precise signal in the market and act in accordance with the latest fundamental news release.