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Morning bell: Oil down 6%

Crude Oil was heavily hit on Monday after Iraq reported a record-high production for December, further adding to the already oversupplied market thus sending Oil down by 6%. OPEC Officials stated that they will not limit crude oil production unless non-OPEC countries take the same action. Crude Oil was last trading around $29.75, while Brent Oil was just below $30. Affected by the energies market as well as by the Australian holiday, both the Australian and New Zealand Dollars are trading a bit lower early on Tuesday with AUDUSD reaching a low of $0.69321 and NZDUSD $0.64232.

Chinese indices also took a hit as Oil is back below $30 and the Japanese index Nikkei (Japan225) is already down more than 2%. The only big winner seems to be Gold which is trading close to the monthly high thanks to the weaker Dollar and stock markets. Platinum climbed 4% to reach a two week high on Monday while Silver is keeping relatively steady around the $14 area.

ECB President Draghi stated late on Monday that extremely low inflation is hurting consumers as well as the ECB’s credibility. More specifically he said, "Meeting our objective is about credibility. If a central bank sets an objective, it can't just move the goalposts when it misses it." The Euro climbed to a high of 1.0858 against the US Dollar during Tuesday’s Asian session, especially as investors are patiently waiting Wednesday’s Fed policy meeting. Against the British Pound, the Euro is also gaining ground as the Sterling is facing bad publicity from the ‘Brexit’ uncertainty and the prospect of interest rates.



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