Focus of the day July 13, 2020
Infections in the US are still a concern. But this – excuse the tautology – doesn’t seem to concern the market anymore. At least, not as much as it used to. Probably, investors are exhausted to stay anchored at pessimistic bay just because of the infections all the time. In addition to that, vaccine developers, particularly in the US, report successful results. That significantly improves the psychological background of the market.
Therefore, currently, the US dollar is down against most currency pairs. A similar light-mood picture is in the stock market so far. Very possibly, we are in for an optimistic week this time. If that’s the case, watch the USD lose more value, gold drift across $1 800, and oil… The oil will be having some interesting days ahead as this week’s OPEC meeting will delineate the plans of the cartel.
Latest news:
A US-EU trade war is looming while the US-China relationship left the stage for a while. Luxury imports from France will be subjected to tariffs in the US while the US IT production will be taxed in the EU. The stock market on both sides should give a short-term reaction while the long-term consequences will depend on how the confrontation goes.
The oil market is going through fierce volatility as the OPEC meeting this Wednesday is approaching. On the one side, there is a recent drop to $38.5 in WTI price as Russia and Iran are reported to plan output increase. On the other hand, the IEA assures that there will be a sharp increase in oil demand in the coming months as world economies will be doing much better as recovery goes on. Strategically, the global demand should have the upper hand. Therefore, expect an upward trend in the long term, with somewhat increased volatility in the short term.
$1 800 has been secured by the gold price last week and so far look pretty safe to stay there. Although lighter moods seem to infiltrate the market more and more, somewhat chaotic news coming from different ends of the globe keeps the uncertainty in the place. For this reason, despite the optimism, it is unlikely the gold price leaves its newly reached highs. Rather, it floats sideways waiting for another turn to a heavier outlook.
https://lianovi.online/2020/07/13/focus-of-the-day-july-13-2020/
Infections in the US are still a concern. But this – excuse the tautology – doesn’t seem to concern the market anymore. At least, not as much as it used to. Probably, investors are exhausted to stay anchored at pessimistic bay just because of the infections all the time. In addition to that, vaccine developers, particularly in the US, report successful results. That significantly improves the psychological background of the market.
Therefore, currently, the US dollar is down against most currency pairs. A similar light-mood picture is in the stock market so far. Very possibly, we are in for an optimistic week this time. If that’s the case, watch the USD lose more value, gold drift across $1 800, and oil… The oil will be having some interesting days ahead as this week’s OPEC meeting will delineate the plans of the cartel.
Latest news:
A US-EU trade war is looming while the US-China relationship left the stage for a while. Luxury imports from France will be subjected to tariffs in the US while the US IT production will be taxed in the EU. The stock market on both sides should give a short-term reaction while the long-term consequences will depend on how the confrontation goes.
The oil market is going through fierce volatility as the OPEC meeting this Wednesday is approaching. On the one side, there is a recent drop to $38.5 in WTI price as Russia and Iran are reported to plan output increase. On the other hand, the IEA assures that there will be a sharp increase in oil demand in the coming months as world economies will be doing much better as recovery goes on. Strategically, the global demand should have the upper hand. Therefore, expect an upward trend in the long term, with somewhat increased volatility in the short term.
$1 800 has been secured by the gold price last week and so far look pretty safe to stay there. Although lighter moods seem to infiltrate the market more and more, somewhat chaotic news coming from different ends of the globe keeps the uncertainty in the place. For this reason, despite the optimism, it is unlikely the gold price leaves its newly reached highs. Rather, it floats sideways waiting for another turn to a heavier outlook.
https://lianovi.online/2020/07/13/focus-of-the-day-july-13-2020/
