2019-11-11 • Updated
The pound strengthened to its highest this year after UK Prime Minister Theresa May called for a snap election on June 8, seeking a personal mandate and parliamentary support to take her through tough Brexit talks. Then, it was stopped by 50-week MA having failed to rise higher. Towards the end of the past week, GBP/USD traded lower as it was understood that Tuesday’s upside had been a bit exaggerated by a market and that the uncertainty over upcoming election might put the pound under pressure.
Next week, global sentiment amid risks surrounding Korean peninsula and France will likely be a key driver of GBP/USD currency pair, as the economic calendar is light. On Tuesday, pay a closer attention to the US CP consumer confidence report. US unemployment claims and durable goods orders will be released on Thursday. In the end of the week, keep an eye on the British preliminary GDP, US final GDP, and Chicago PMI.
After the Tuesday’s peak to 1.2900, GBP/USD retraced to 1.2800. The consolidation phase is still intact. There is a little scope for extension towards 1.2910, 1.2950. Most likely, the prices will continue ranging within 1.2860 – 1.2660 levels within the next trading sessions. A break of the lower border of the range might send prices towards supports at 1.2615, 1.2420.
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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