Market Watch
When all is well
This week, as well as the month as a whole, began with clear optimism for the oil market. Let me remind you that on May 1, the OPEC+ deal to reduce oil production came into force. In addition, most countries have already begun to relax restrictive measures, which helps to increase the physical demand for petroleum products. As a result, we simultaneously received two strong bullish fundamental factors: a decrease in production and an increase in demand.
Against this background, the price of oil of the American grade WTI reached $26 per barrel. In addition, I draw attention to the fact that over the past five trading days, the oil price doubled without a visible correction. As a result, the risk of a short-term decline continues to increase. Thus, active market purchases remain in a high-risk area.
And now let's move on to the publication of data on changes in the level of business activity in the eurozone services sector. Actual data turned out to be better than expected, but this publication did not support EUR.
In the first half of the European trading session and immediately after the publication of this report, we observed a weakening of the EUR/USD currency pair. The closest strong technical support level and target for sellers is still at 1.0775.
I will also draw your attention to the general strengthening of JPY. For example, the EUR/JPY currency pair has had higher lows since April 2017, while GBP/JPY has fallen by more than 150 points over the past couple of days. All this indicates a decrease in interest in risk, because European currencies are risky assets, while JPY is a safe haven currency.
We conclude today's review with an analysis of upcoming reports during the American trading session. First of all, I will draw your attention to the data on the employment market. A sharp decrease in the negative value may support the USD, while the release of weaker data in comparison with the forecast will contribute to a moderate weakening of the US dollar.
It is also important to pay attention to the report on changes in reserves and oil production in the United States. A further slowdown in reserves growth and a decrease in production volumes may provide additional support for oil quotes at the time of release.
The above review is not a direct guide to trading, and can only be classed as a recommendation.
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Trade with the Fibo Group!
#MarketWatch
When all is well
This week, as well as the month as a whole, began with clear optimism for the oil market. Let me remind you that on May 1, the OPEC+ deal to reduce oil production came into force. In addition, most countries have already begun to relax restrictive measures, which helps to increase the physical demand for petroleum products. As a result, we simultaneously received two strong bullish fundamental factors: a decrease in production and an increase in demand.
Against this background, the price of oil of the American grade WTI reached $26 per barrel. In addition, I draw attention to the fact that over the past five trading days, the oil price doubled without a visible correction. As a result, the risk of a short-term decline continues to increase. Thus, active market purchases remain in a high-risk area.
And now let's move on to the publication of data on changes in the level of business activity in the eurozone services sector. Actual data turned out to be better than expected, but this publication did not support EUR.
In the first half of the European trading session and immediately after the publication of this report, we observed a weakening of the EUR/USD currency pair. The closest strong technical support level and target for sellers is still at 1.0775.
I will also draw your attention to the general strengthening of JPY. For example, the EUR/JPY currency pair has had higher lows since April 2017, while GBP/JPY has fallen by more than 150 points over the past couple of days. All this indicates a decrease in interest in risk, because European currencies are risky assets, while JPY is a safe haven currency.
We conclude today's review with an analysis of upcoming reports during the American trading session. First of all, I will draw your attention to the data on the employment market. A sharp decrease in the negative value may support the USD, while the release of weaker data in comparison with the forecast will contribute to a moderate weakening of the US dollar.
It is also important to pay attention to the report on changes in reserves and oil production in the United States. A further slowdown in reserves growth and a decrease in production volumes may provide additional support for oil quotes at the time of release.
The above review is not a direct guide to trading, and can only be classed as a recommendation.
=========
Trade with the Fibo Group!
#MarketWatch