Chinese workers are on strike

Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today! 

Key market events:

15:30 MT, CAD GDP m/m

17:00 MT, GBP BOE Gov Bailey Speaks

Oil is tensed again

Oil rose as China refined its approach to fighting Covid-19 after massive protests against strict restrictions, and traders looked forward to an OPEC+ meeting that could see supply cuts to counter market weakness. 

The Organization of the Petroleum Exporting Countries and its allies, including Russia, may consider cutting supplies when its members meet to assess production policy this weekend, which could lead to a tightening of restrictions agreed upon at the members' last meeting in October. The meeting comes ahead of a deadline with the European Union restricting Russian flows as the bloc struggles to negotiate a price limit.

At the moment, the oil continues its downtrend between support and resistance lines. Most likely, the price will drop to $80 per barrel during the day. In case of the resistance level breakout, the next target will be $89.

Other important news:

• Mark Mobius stated that BTC could fall to $10,000, but that wouldn’t be the end of the crypto.
• Today, the Chinese authorities will hold a briefing on the situation with Covid in the country and anti-covid restrictions.
• The gas price in Europe could break through the proposed ceiling of $3,000/ths. cube and reach higher levels.
• Traders are looking forward to Fed Chairman Jerome Powell's speech on Wednesday. Many economists expect him to shore up bets that the Fed will slow its pace of rate hikes next month, while at the same time reminding Americans that the fight against inflation will last until 2023.
• Microsoft will offer European regulators new ways to deal with the Activision Blizzard takeover deal in the coming weeks to avoid formal regulator objections to the merger.

Have a great day!

FBS Analyst Team

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