FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
ETX Capital information and reviews
ETX Capital
Markets.com information and reviews
FxPro information and reviews
47 783.36

Abnormal winter and the energy sector

17 February 2021

I will start today's release with a noticeable drop in temperatures in both Europe and the United States. Of course, the cold winter increases the physical demand for energy resources, including gas and oil, thereby pushing prices up. So the sharp deterioration in weather conditions in the central part of the United States led to an energy crisis and even power outages in some American cities. As a result, the price of American WTI crude oil continues to rise, once again updating the highs since the beginning of 2020. It is noteworthy that oil prices rose above the $60 per barrel mark. Let me remind you that at the beginning of this month, we discussed this goal as quite ambitious and medium-term. Accordingly, further deterioration of weather conditions and the growth of the US stock market may return oil prices to a local maximum of a little above $65 per barrel.

Having partially touched upon the topic of the growth of the American stock market, I would like to draw your attention to the rapid decline in the so-called Fear index, which at the beginning of this year rose above 80 points, and is already at 20 points, thereby indicating a high investor interest in risk. As a consequence, the demand for the US dollar may remain weak until an unexpectedly strong negative fundamental factor appears in the market.

If we look at the foreign exchange market, we will see full confirmation of the growing demand for risky currencies. Thus, the AUD/USD currency pair is approaching the maximum of this year, while the GBP/USD pair has already reached the maximum values since April 2018. And without the appearance of unexpected and extremely strong events, the general trend in the market will continue, which means that these currency pairs still have the potential for growth.

And now let's move on to the upcoming events. Today, Britain and Canada will report on the change in consumer inflation. At the same time, the report on changes in the volume of retail trade in the United States remains a more significant event that can have a noticeable impact on the market. Economists predict a moderate increase in the indicator, so its unexpected decline can put additional pressure on the USD, although in the longer term, such a development will strengthen the US currency.



Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Wall Street loses altitude. Dollar grinds higher
Wall Street loses altitude. Dollar grinds higher

The relentless rally in US stock markets took a breather last week. Wall Street suffered a rare pullback as investors took some profits off the table, positioning...

13 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 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.