This week is Thanksgiving when markets are traditionally quiet and the focus is on the American consumer. However, given the current financial landscape nothing can be taken for granted.
The OPEC summit ended in division with Iran and Venezuela wanting payment for their oil in anything other than the US dollar. This discussion was “accidently” broadcast to journalists. Despite recent rumours no one, so far, has excerised the “nuclear option” of massive dollar sales. Indeed the most interesting aspect of the meeting was the extent to which oil producing countries are looking at alternative forms of energy and climate change.
They could do worse than start to invest some of their petro dollars in companies researching into this technology.
The smaller Gulf States such as Dubai and Qatar are already looking beyond the oil bonanza and are focusing on financial serices and tourism. The need for fresh water will be much more important so again investing in these technologies will be of paramount importance.
Translated to the currency market today is very quiet despite speeches from Trichet and Paulson. It is only later this week (starting tomorrow) when we have FMOC and BOE minutes as well data across the pairs that we could see some significant moves.
My own opinion is that all the markets seem “tired” – sub prime, credit crunch, weak dollar, high oil prices – there are only so many ways to say the same thing! So maybe a slowdown or even recession would be welcome if only to start writing about something else!