FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
91%
HFM information and reviews
HFM
89%

The collapse in oil prices


27 October 2020

There is less and less optimism and this is very clearly seen in the change in risk appetite. France records more than 52,000 officially confirmed COVID-19 cases every day, while the head of the scientific council of France notes that there is approximately the same number of infected people who are not included in the official statistics. Also in the United States, the last two days have seen a record number of new cases of COVID-19. Italy has announced a partial lockdown, and Spain has introduced a national curfew.

On Friday, we saw a fairly active wave of sales in the black gold market. On the last trading day of last week, sellers failed to overcome the technical support level at $39.5 per barrel, but by the middle of the European trading session, US WTI crude oil fell below $38.5, negatively reacting to the rapid increase in new COVID-19 cases in the US and Europe.

The number of cases in most countries of the world is significantly higher than in April and March, when there was a total quarantine in the United States and Europe, but now countries are in no hurry to take such drastic measures. However, the risk of oil prices returning to $36 per barrel remains very high. In addition, Libya intends to almost double its oil production, putting additional pressure on oil quotations.

And now let's move on to the equally important news, which, along with the pandemic and the upcoming presidential elections in the United States, has faded into the background. I’m talking about the trade and technological confrontation between the United States and China. Let me remind you that since September of this year, the largest American companies, such as Apple, Google and a number of others, have begun to withdraw their own production from China. All this leads to a global split and can result in quite strong shocks in the financial markets. 

As the risks associated with the coronavirus pandemic and the deterioration of relations between the US and China increase, the demand for risky assets continues to increase. So the USD, which serves as a protective asset, resumed growth in a pair with most currencies. For example, the EUR/USD currency pair came close to 1.1800 during the European session, losing more than 40 points.

#source

Share: Tweet this or Share on Facebook


Related

Dollar flat as market braces for central bank decisions later in the week
Dollar flat as market braces for central bank decisions later in the week

The dollar was up modestly in early trading in Europe on Monday, at the start of a key week for central bank meetings on both sides of the Atlantic. By 03:00 ET (08:00 GMT), the dollar index...

30 Jan 2023

Mega Central banks, OPEC, NFP & Earnings week
Mega Central banks, OPEC, NFP & Earnings week

China Stock market returns from Luna New Year break. Chinese stocks rose while most other Asian equities fell as investors looked to interest rate decisions scheduled this week in the US...

30 Jan 2023

XAU/USD remains on the defensive around $1,925 ahead of US PCE
XAU/USD remains on the defensive around $1,925 ahead of US PCE

Gold price remains on the defensive for the second straight day amid modest US Dollar strength. Thursday’s upbeat US macro data fuels hawkish Fed expectations...

27 Jan 2023

XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP
XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP

Gold price pulls away from a fresh multi-month top amid a modest US Dollar strength. Bets for smaller rate hikes by Federal Reserve, recession fears should help limit losses...

26 Jan 2023

Microsoft: Still Trapped Within Descending Channel
Microsoft: Still Trapped Within Descending Channel

Microsoft Corp., an American multinational technology conglomerate currently ranked the third largest company by market capitalization ($1.728T) which actively engages...

24 Jan 2023

Same story new week
Same story new week

Chinese New Year celebrations – many centres are closed in Asia. Treasuries sagged to end on a bearish week. USDIndex at 101.30 low as the market continued...

23 Jan 2023


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
Libertex information and reviews
Libertex
83%
Vantage information and reviews
Vantage
83%

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.