The EUR/USD pair keeps rising and is trading at 1.0850. In addition to strong macroeconomic data, the euro is supported by the comments of the Fed representatives that the worst times for the U.S. banking system are still ahead. The member of the Fed board of governors Philip Jefferson said the day before that the outflow of client deposits from small banks could have a negative impact on small businesses, which are highly dependent on regional financial institutions in terms of lending. He also indicated that the monetary authorities are ready to assist them if necessary. Jefferson also noted that the regulator is still analyzing the impact of the current interest rate hike on the economy and inflation. Against this backdrop, we recommend holding long positions on the EUR/USD pair.
BUY STOP 1.0850/TP 1.0950/SL 1.0820
The GBP/USD pair keeps moving higher. Traders are analyzing yesterday’s statements by the Bank of England governor Andrew Bailey. The official noted that the regulator recognizes the deterioration of economic conditions amid problems in the U.S. banking sector but is confident that current events will not affect the national financial system. In addition, Bailey again confirmed his readiness for more rate increases. Market participants expect that amid significant inflation, the Bank of England may raise the rate by 50 basis points, which should support the national currency.
BUY STOP 1.2350/TP 1.2450/SL 1.2320
Oil continues to race to the upside. Prices are supported by the suspension of oil exports from Iraq to Turkey in the amount of 450 thousand barrels per day. Analysts also note comments by Russian Energy Minister Nikolai Shulginov, who said the country has successfully redirected its oil exports to new markets. During the day, investors await the Energy Information Administration’s weekly report on oil reserves in the U.S. According to forecasts, inventories are likely to decline, which could provide further support to prices.
BUY STOP 74.50/TP 76.50/SL 73.70