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.
Lagarde’s speech pushed EUR down
2020-09-30 • Updated
ECB’s President Christine Lagarde is planning to follow the Fed’s approach and allow inflation to overheat. The Federal Reserve earlier targeted the 2% inflation, letting it to overshoot.
Lagarde claimed: “If credible, such a strategy can strengthen the capacity of monetary policy to stabilize the economy when faced with the lower bound. This is because the promise of inflation overshooting raises inflation expectations and therefore lowers real interest rates.”
Although she hasn’t imposed this approach yet, the signal was quite strong. As a result, possibly lower rates reduced the demand for the euro. Elsewhere, the German Consumer Price Index came out worse than analysts expected yesterday, marking the sharpest slump in almost five years. As you know, Germany is Europe’s largest economy, that’s why this report worried investors and weighed so much on the euro. At the same time, intense debates between Trump and Biden deteriorated the market sentiment and underpinned the USD, especially after Trump refused to approve election results in case of Biden’s victory.
The risk-off sentiment pushed EUR/USD to the downside. It has shown the worst performance in six months last week. That’s why traders have doubts that the pair will stick to its long-term uptrend. The MACD indicator has crossed the zero line to turn negative, confirming a downtrend.
On the 4-hour chart we can notice that the pair has failed to break through the 50-period moving average at 1.1710. If it manages to drop below it, the way to yesterday’s low of 1.1675 and then to the next support of 1.1615 will be open. In the opposite scenario, if it rises above the key resistance of 1.1750, it will jump to a 100-period moving average of 1.1770.
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.
Welcome to October, the tenth month of 2023. For this installment of What to Trade, I have handpicked a few of my favorite trade ideas for the month. Let’s go over a few of them.
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.