Oil & GBP slide lower

21 June, 2017

Oil continues to be under “over supply” pressure resulting in prices dipping to 7 month lows. Yesterday Oil suffered a 2% drop as the increased supply from several key producers undermined OPEC producers deal to reinforce a cut in global output. For those traders following technicals the recent fall in Oil equates to a 20% fall from recent highs signaling official “bearish” territory. In early trading WTI was trading around $43.35pb and Brent was trading just below $46pb. GBP dropped on Tuesday, and continued to be soft, after Bank of England Governor Mark Carney stated “that there would be no immediate adjustment of monetary policy by the central bank” in a speech he delivered at Mansion House in London. He also stated that “this stimulus is working, and that credit is widely available, the cost of borrowing is near record lows, the economy has outperformed expectations and unemployment has reached a 40-year low”. Because of his comments the market has reacted that an interest rate rise is highly unlikely.

GBPUSD dropped from 1.2753 at 8:00 BST to 1.2631 just before 15:00 BST in response to Carney’s comments yesterday. Overnight GBPUSD has traded in a range of 1.25885 to 1.26345 currently trading near the lows at 1.2590. Today sees the State Opening of Parliament in the UK. An event normally full of pomp but, due to the snap election, will be somewhat muted. Whilst the Conservative Party is the largest party in Government there are still concerns that they may not gain the support of the DUP in Northern Ireland and gain the slim majority they need to govern without complications from other parties. Regardless, Prime Minister May will have a greatly trimmed down manifesto with the focus being Brexit and the state of the UK economy. We can expect GBP to continue to be under some pressure because of these uncertainties. EURUSD recovered slightly, after hitting a 3 week low, currently trading around 1.1130. USD also eased against JPY currently trading around 111.19. At 15:30 GMT the EIA Crude Oil Stocks change (June 16) are released. The consensus is -2.106M with the previous release at -1.661M. Regardless of the figure that is released we are expecting volatility in Crude Oil.

Source link  
Dollar updates its 14-month highs

The strengthening of financial markets on Tuesday has not been unsustainable and prolonged. Recent shots in the U.S. trade conflicts are: a Chinas claim...

Dollar has a potential of 5% rally

The dollar rewrote 13-months highs on Friday to a basket of six major currencies, adding 0.25% after gaining 0.5% on Thursday. The further growth of...

BoJ cautions keep forex calm

In the currency market, the dollar was under some pressure following the data that indicated a weakening of the inflation in the Eurozone. The slowdown in prices...

Stocks are growing, Bonds under pressure

The situation in the world markets looks controversial. Shares are growing after strong reporting of companies. The shares of Alphabet (#Google) jumped by 3.6% after...

The potential of USD growth is limited

Powell's speech with the semiannual report in the U.S. Congress contained an optimistic view on the economic outlook. Such a tone has reduced fears that...

Oil drops back into June price range

The WTI Oil price fell from $72.98 to $68.68 yesterday despite the inventories data showing a draw of -12.6M barrels which is the biggest since September 2016...

Dollar is weaker today after rejection 95.50

The USD has weakened against the majors after the DXY rejected the 95.50 level in yesterday's trading creating a technical double top and is now trading down...

Stronger IT, softer financials

Stock markets continue to strengthen with increased demand for high-tech companies. The NASDAQ100 closed a second day in a row...

USD weakens through the day yesterday

The USD weakened further overnight after the move began in the US trading session yesterday. USDJPY moved down under the 110.000 level after...

In the past 24 hours Bitcoin has gained 1.07% and reached $6279.52276711. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -2.3522% and is now at $1.1335. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -21.9% and is now at $281.319312045. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
5FIBO GroupFIBO Group78%