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 keeps rallying
2020-09-29 • Updated
The US dollar became stronger last week amid the risk-off sentiment, but this week the demand for the greenback waned. It was caused by optimism over the US fiscal stimulus package and also some progress in the Brexit agreement. The impasse between Democrats and Republicans has been too long, therefore the recent announcement to unveil 2.2 trillion dollars improved the market sentiment and weighed more on the safe-haven yen. On the flip side, uncertainty over November’s US elections may underpin the JPY against the USD.
USD/JPY has been rising for almost a week except for Monday, but the strong resistance of the 50-day moving average at 105.80 may stop it from moving higher. In fact, it has already failed several times to cross it. However, if it manages to break it through, the doors towards 106.20 and then to 106.50 will be open. The RSI indicator has approached the 50.00 level. As you may know, if the RSI is above this point, momentum is considered up and there’s more sense to look for opportunities to buy. That’s why, the breakout may confirm further bullishness.
In the opposite scenario, if it falls below the key psychological mark of 105.00, the way to the low of September 17 at 104.50 will be open. Indeed, this scenario is quite possible as the long-term trend is bearish, and there is no sign of reverse yet. Wait what will happen next: breakout or pullback and join the flow!
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.