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.
What will move the market on August 23-27?
2021-08-20 • Updated
After an extremely volatile week in the markets, traders await the next steps of the USD and stocks. What drivers will move the assets next week? Lets’ find out!
The main intrigue of this week is connected with the further performance of the US dollar. The USD strengthened last week on the tapering hints by the Federal Reserve. According to the FOMC Meeting Minutes, the Fed will be ready for stimulus reduction before the end of this year. This week, we will see more volatility on the markets as the Jackson Hole Symposium is on the way! The event starts on Thursday, but traders will pay particular attention to Friday's session due to the Fed's Chair Powell speech. If you trade EUR/USD, bear in mind that the whole bunch of the European PMIs are coming out on Monday. If the indicators are stronger than expected, the euro will rise. The key resistance lies at 1.18. In case of more demand for the US dollar, the retest of last autumn’s low of 1.1620 will be inevitable. Also, pay attention to USD/CAD. The pair may reach the resistance of 1.3030 this week.
Investors will continue tracking the performance of indices. Last week, the stock indices dropped heavily with S&P500 (US500) sliding below 4400. The week was even more hurtful for the Asian stocks with Nikkei (JP225) falling below 27,000. The heartbreaking picture of the stock market is a result of the comments on tapering by the Federal Reserve, China’s targeted restrictions of the big tech, and a fresh wave of delta cases across the world. If the stock market remains pressed, JP225 will fall to the next low of 26,200. The resistance is located at 28,300. As for US500, the next support lies at 4320. In case of recovery, follow the resistance of 4430.
Oil & metals
The oil prices kept moving within a downtrend last week. The price of XTI/USD inched lower to the support of $61.55. On the upside, the resistance to follow is placed at $64. The price of XBR/USD follows a similar scenario. After reaching $64.50, the next target for sellers may be placed at $61 (200-day SMA). Gold failed to reach the resistance of 1800 last week. Thus, this level remains the first target to follow if the USD weakens. On the contrary, the strength of the greenback will pull the price of the precious metal lower to $1750.
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.
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.