Brent crude futures is maintaining stability this Friday, with traders awaiting an OPEC+ meeting that might lead to further supply cuts. Brent crude was down 8 cents at $81.34 a barrel, following a 0.7% drop in the previous session.
EUR/USD: risk-off sentiment drives pair down
2020-12-22 • Updated
The new Covid-19 strain has been found in the United Kingdom. The new virus variant appears to be 70% more contagious than other strains. The market sentiment immediately worsened after the report. As a result, investors poured their capital into safe-haven assets like the USD, the JPY, and the CHF. The USD was the number one reserve currency this year. It has started to lose its dominancy due to the vaccine rollout and the global recovery. However, fears of the new wave of stricter global lockdowns increased the demand for the USD.
"With EUR/USD already pressuring key tactical support near 1.2175, if this fails to hold, the bulls may beat a retreat to the key 1.2000 area," says Saxo Bank.
EUR/USD dropped enormously yesterday. However, the 50-period moving average at 1.2165 limited the further falling. If the pair plummets below the psychological mark of 1.2200, the way down to the 50- moving average of 1.2180 will be open. However, the pair shouldn’t cross this strong support as it has failed to break through the 50-period MA many times since early November, that’s why we can expect the pullback to the upside. Resistance levels are 1.2240 and 1.2270.
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.
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.