Oil price recovery supports exporters

August 28, 2015

We enter the last day of what has been a fairly volatile trading month. Everyone expects August to be quite and it rarely ever is. For example, it was August 2011 when the VIX previously spiked to current levels on the back of the US budgetary problems and ratings downgrade in the US. We have seen the dollar recover through the course of the week but this is more down to the sharp reversal seen against the single currency and also sterling. If you look at the price action on US interest rate futures, then the market’s opinion on a September rate increase has changed little, with the odds still looking to be around 20%. Asina stocks are mostly firmer, with the Shanghai composite looking to end the day in positive territory for the second consecutive day. The other relevant price action for currencies has been the oil price, with weaker than expected inventory data in the US allowing a sharp recovery in Brent back to the 48 level. The Russian rouble has reversed from the 70 level as a result on USDRUB, with the Norwegian krone and Canadian dollar also performing well on the back of the oil price.

The data overnight in Japan has shown a familiar picture, of continually low inflation, slightly better than expected retail sales and the jobless rate falling from 3.4% to 3.3%. Other data today arrives in the form of revisions to UK GDP data and Eurozone business and consumer confidence data at 09:00 GMT. We also see PCE data in the US at 12:30 GMT, with final Michigan confidence data at 14:00 GMT. Overall, it’s going to be equities and the oil price that determine direction for currencies.

Publication source
FxPro information  FxPro reviews

January 20, 2017
Advance in inflation across the Eurozone
Euro holds gains against the US Dollar ahead of the ECB rate decision, as majority of economists expect no major updates in the policy, while investors will be taking stock of Draghi rhetoric’s to foresee the timeframe of the next big move by the policymakers...
January 20, 2017
US oil inventory draw gave a temporally support for oil prices
Oil prices remained in red figures after Wednesday's bearish acceleration. Brent a little changed on the day and remained prone to more weakness on Thursday. The benchmark stayed neutral around 54.50 dollars per barrel flirting with the level during the European session...
January 20, 2017
Pound gives up gains
The British pound has pulled back sharply today after making its biggest 1day gain in nearly 20 years’ yesterday, as fears once again crept in about where Brexit will lead to...

FBS Rating
OctaFX Rating
Tickmill Rating
Orbex Rating
Z.com Trade Rating
FOREX.com Rating

365BinaryOption Rating
OptionBit Rating
OptionRally Rating
TopOption Rating
First Binary Option Service Rating
Binary.com Rating