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.
EUR/GBP: climbing higher
2020-07-14 • Updated
The pair approaches the significant resistance at 61.8% Fibo level. Look for the breakout!
According to Rabobank, EUR/GBP may surge to 0.92. This movement can be caused by no-Brexit agreement. In addition, the combination of Brexit uncertainties and the COVID-19 economic damage may force the Bank of England to take extra measures to support the economy such as negative interest rates. In comparison with other countries, which have already imposed negative rates, the UK has an account deficit. This situation put the British pound under threat. Analysts from Commerzbank assured that if EUR/GBP breaks through the resistance at 0.9056, the pair may point to the 0.9129 resistance.
- The British GDP came out much worse than analysts expected. It turned out 1.8%, while the forecast was 5.5%. Thus, the British pound got an additional headwind amid the current risk-off sentiment.
- The EU got a mixed data today: the poor industrial production and the positive ZEW economic sentiment. Investors shrugged off the negative data. As a result, the Euro bulls became stronger today.
EUR/GBP has sharply rose since yesterday. It approaches the key resistance at 61.8% Fibonacci retracement level at 0.9084. If it breaks it through, the pair may surge to the 78.6% Fibo level at 0.9125. Support levels are at 0.9056 and 0.9029.
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.