2021-03-16 • Updated
Deutsche Bank, a well-known German investment bank, has raised its growth forecasts for the UK for the current year. The bank claimed the British economy will almost fully recover to its pre-pandemic levels by the end of the year. Unlike the UK, the forecast for the EU was downgraded. While the Euro Area pauses its vaccination campaign, the UK keeps the current pace, which should help the country to rebound faster.
The market optimism over the UK will underpin the pound and help it to rally up further. Besides, the worse-than-expected US sales data came out today and pushed GBP/USD upwards, allowing GBP/USD to regain its recent losses. If it manages to break the 50-period moving average of 1.3900, the way up to the intersection of the 100-period moving average and the 38.2% Fibonacci retracement level of 1.3950 will be open. It seems that the bullish potential is really strong, so we may expect a further rising. The breakout above 1.3950 will lead the pair to the psychological mark of 1.4000. Support levels are at the intraday low of 1.3800 and the next round number of 1.3750.
Follow the Bank of England's statement this Thursday at 14:00 MT time! To get ready for this event, read our article "Will the GBP stay steady?"
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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