Good morning,

The 2015 United Nations Climate Change Conference will be held in Le Bourget, from November 30 to December 11. Germany will publish preliminary inflation numbers are Retail Sales data. German Factory Orders: Friday; Germany factory orders has disappointed in September with a drop of 1.7%. A rebound of 1.3% is predicted in this volatile figure. The other data in Monday are Chicago PMI (US), Pending Homes Sales (US), Consumer Credit (UK), M4 Money Supply (UK), M4 GBP Lending (UK), and Mortgage Approvals (UK). Tuesday; China Caixin manufacturing PMI (November): this is the private sector reading, which can be more reliable, and is expected to rise to 48.5 from 48.3. The RBA board meeting on Tuesday, the last for the year, is expected to be a non-event with markets only pricing a 4% chance of a Rate cut. BOE Financial Stability Report: Tuesday; BOE will release its evaluations of the stability of the UK banking system and the results of the 2015 Bank stress tests. This week, central banks from 3 countries or jurisdictions are scheduled to decide on monetary policy: Australia, Canada and the European Central Bank. In the US, investors will be looking at: labour market data, trade balance and ISM manufacturing and non-manufacturing PMI. Elsewhere: Australia, Switzerland, and Canada are to release GDP growth figures for Q3. UK Construction PMI: Wednesday; recent readings have been close to the 60 point level, indicative of strong expansion in the construction sector. BOC Overnight Rate: Thursday; The BOC surprised the markets in July when it cut rates to 0.50%, down from 0.75%. Wednesday, December 2nd: the Federal Reserve Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts. Australia Retail Sales: Friday; Retail Sales is a key indicator and should be treated as a market mover by traders.

Oil prices fell sharply in low volume trade on Friday, as concerns about a global supply glut continued to pressure prices. It is trading at 42.15 currently. EURUSD dipped to new lows but also showed hesitation, closing another week in the red. The pair is trading at 1.0588 currently. GBPUSD had a rough week, as the pair lost about 160 points. The pair is trading at 1.5035 currently. GBPEUR, GBPUSD and GBPAUD all produced a negative trend heading into the weekend, with anyone hoping to use GBP as a purchasing currency seeing their exchange getting slightly more expensive. It was another quiet week for USDJPY, as the pair finished the week almost unchanged, at 122.79. We remain bullish JPY. Gold has been in a downtrend for 6 consecutive months, losing -11.22% in total. It is trading at 1057.10 currently. AUDUSD had an uneventful week, as the pair finished the week almost unchanged. The pair is trading at 0.7187 currently. CAD showed some movement in both directions last week, but finished the week unchanged, as USDCAD closed at 1.3370. USDCHF briefly surpassed its high before the EURCHF floor was removed, and we still believe that the CHF has upside momentum. S&P 500 and Nikkei hovered just above the flat line. German DAX was up 1.56%, well off its 3.84% gain the previous week.

Russian President Vladimir Putin signed a decree Saturday completing an array of sanctions against Turkey in response to the downing of a Russian bomber on the Syrian border, as Turkish leaders sought to calm tensions with gestures of goodwill. European central banks have already shattered the notion that official interest rates cannot fall below zero. Abe, Prime Minister of Japan told reporters he has ordered the corporate rate of tax to be cut to below 30% at an early date from the current rate of 32.11%. Last week, Bank of England Governor Mark Carney appeared to signal that he would raise the requirement, saying the counter-cyclical buffer could make banks more resilient while addressing concerns about how an extended period of low interest rates has fueled activity in the housing market. The latest official data showed that the UK Economy continued to grow at a reasonably strong pace, with increasingly robust domestic demand from businesses and consumers offsetting weak trade as key export markets remained in the doldrums and the strong GBP hit competitiveness. Confidence in the Australian Economy, and therefore the AUD, sky rocketed when Glenn Stevens, the Governor of the Reserve Bank of Australia, removed much of the likelihood for an interest rate cut in the Australian economy in the early part of last week. “At this point, I see the U.S. economy as performing well,” Fed Chair Janet Yellen said in November, adding, “December would be a live possibility.” Oil prices were enjoying a bounce up, suggesting OPEC strategy of pumping more oil, protecting its market share and putting pressure on higher cost oil in the USA and other countries was paying off.