Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
OIL: storms and prices
Information is not investment advice
Oil dropped below $37 per barrel at the beginning of September. By the middle of the month, it was in $41. October saw it drop to the same range of $36.50-37, just slightly higher. Finally, now we are witnessing it come again to $41-41.15. So the question is: will bounce down again as it did three weeks ago, or it will break the resistance and aim at $43.50?
Hurricane Delta seems to leave little room for doubts: the price will rise. This category 3 storm in the Gulf of Mexico has forced the emergency shutdown of many businesses, including those of oil extraction, many of which are located in the south of the US – exactly where the hurricane is expected to hit. Therefore, this temporary stall of oil production will lead to a consecutive local shortage of oil supply, tilting the balance towards higher prices. In case you like geopolitics, this is happening at the background of the OPEC emerging from the virus with the high market share as many US oil producers had to discontinue their business because of low prices in the previous months. In this sense, Delta boosts the oil price and the OPEC’s tactical position at the same time.
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Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
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European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
What awaits the Oil Market in February?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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