G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
Oil surged amid soft dollar
Information is not investment advice
What happened?
Oil is edging higher due to the overall risk-on sentiment and a weaker US dollar, despite rising cases in India. India is one of the main oil importers, and it continues to report more than 300 000 infections every day. This year, oil has been boosted by the vaccine rollout, but some local coronavirus outbreaks and concerns over inflation limited its gains.
Besides, OPEC on Tuesday gave a strong outlook on the global recovery in oil demand in 2021 due to the growth in China and the United States, which OPEC believes outweighs the coronavirus crisis in India. As a result, the OPEC members have decided to gradually ease oil production cuts.
Technical analysis
Let’s discuss oil on the example of UK Brent oil (XBR/USD). The asset has been moving inside the ascending channel since late March. Pay attention to how the price has reversed up from the lower trend line: over and over again. Thus, this level acts as strong support for oil, and as we expected it has bounced off it today again. The way up to $70.00 a barrel is clear now. It’s a psychological mark, which oil is likely to struggle to cross on the first try. However, sooner or later it may cross it as well and rally up further and even beat this year’s high of $71.00. In the opposite scenario, the move below the 50-day moving average of $65.60 will press oil down to a late April low of $64.00.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
