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.
USD/JPY is approaching key resistance
2020-07-01 • Updated
If the pair crosses this level, it will surge further, otherwise – reverse. Check it out.
- The Japanese data came worse than analysts expected. Unemployment rate turned out 2.9%, while the forecast was 2.8%. Also, the industrial production contracted by 8.4%, while only the 5.6% slump was anticipated. Negative data weighed on the JPY.
- The US home sales bet all estimates. They rose by 44.3% against the forecasted 18.9% increase. That marked the largest surge in the history of home sales since the record began in 2001. The encouraging data pushed USD/JPY upward.
- The Fed’s chairman Jerome Powell will testify this evening at 19:30 MT time. His statement will add the fresh market volatility. If Powell gives optimistic prospects for the US economy and increases asset purchases, USD/JPY may rise, otherwise – fall.
USD/JPY is moving up for the fifth day. It will meet soon the strong resistance at 107.850, which it has touched several times already. There are two scenarios. The first and the most possible one is that the pair will break through the resistance at 107.850 and surge further to 108.400, where is the 200-day moving average lies. According to the second scenario, USD/JPY will reverse from the resistance at 107.850 and fall firstly to the support at 107.400 and then to the 50% Fibonacci level at 106.80. Follow the next movement of the pair, define the break out or the pullback and trade accordingly.
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.