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.
USD/JPY is aggressively dipping
2020-09-17 • Updated
The Japanese yen gained amid the overall risk-off sentiment on the market. Let’s discuss the details.
The Federal Reserve held a meeting yesterday, where it left rates at low levels until 2023. Nevertheless, market participants didn’t take it as dovish. Instead of that, the US dollar strengthened and outperformed most major currencies (except the Japanese yen).
Following this, the Fed claimed that the recovery path would be quite uncertain. As a result, they streamed their capital from risker currencies and stocks into safe-haven assets such as the US dollar and the Japanese yen. Choosing between two of them, the yen seems to be more attractive amid constant US-China tensions and worse-than-expected US retail sales.
Moreover, the Bank of Japan made a monetary policy report this morning. The central bank left asset purchases and interest rates at the current levels. Later on, officials said that they would unveil more stimulus aid if needed. What’s more important, the BOJ added optimistic comments about the Japan output, exports, and consumer spending. As a result, it added some tailwinds to the Japanese yen.
USD/JPY has approached to the key support of 104.70 on the daily chart. The move below will drive the price even deeper to the low of July 31 at 104.30. In the opposite scenario, if it jumps above the intraday high of 105.10, it will clear the way towards the next round number at the 105.50 level.
Follow US unemployment claims at 15:30 MT time. They will add volatility to USD/JPY!
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
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.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.