2020-07-20 • Updated
EU members will meet today for the fourth day of talks. According to Bloomberg, EU countries such as the Netherlands, Austria, Denmark and Sweden are ready to agree on a key plank of the deal. 390 billion euros of the fund should be invested as grants and 360 billion euros – as low-interest loans. It gave the euro a strong impetus to the upside.
The overall market sentiment is still mixed. New coronavirus cases are still climbing up. However, some hopes for a soon vaccine appeared. Richard Horton, Editor of The Lancet, tweeted this on Sunday:
His tweet improved the market sentiment a little bit and weighed on the safe-haven US dollar, as well. Of course, there are some fears that the EU meeting may end today without the final agreement. That would push the Euro to the downside, but now everything seems to go according to the plan.
The euro has shown the great performance since the coronavirus outbreak happened. It has managed to rise from 1.0656 to almost 1.1450 for over 4 months. Today it approached to the high of January 6, 2019 at 1.1470. If it breaks it through, it will surge to the resistance at the key psychological mark at 1.1500. Support levels are at lows of July 17 and 18: at 1.1428 and 1.1385, relatively. Follow news further!
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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