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    Risk-off amid oil decline

    Oil decline was one of the most important movement today. US drillers are more confident with current oil prices and increase oil rigs which may lead to rebound of oil production in the US. The latest data from the Baker Hughes showed that oil rigs increased the second time in a row by 3. With planed oil production increase from OPEC producers oil has passed a two-day decline. WTI has decreased more than 3,0% on daily basis. 

    Risk-assets are trading sharpy lower today and barring a strong reversal into the US close it looks like an ugly end to the week for stock markets The Dax has plummeted in today’s trade and has dipped below 10000 points. There’s red across the board as far as equites are concerned with any bright spots few and far between. US stocks are performing relatively better, but a sell-off on S&P 500 has increased at the end of the US session. 

     The main economic release of the session came from Canada with a marked improvement in the labour market shown by rising employment change and falling unemployment. This caused a sharp initial drop int he USDCAD, but the move was pared by and large over the course of a few hours. US dollar has reversed most of a decline caused by weaker data from labor market released last Friday. 

    Preliminary release of consumer confidence by University of Michigan showed mixed outlook for the US. Current assesment came out a little better, but expectations fell from almost one-year high as households did not see greater gains of wages.  

    With Mainland China on holidays and not many calendar positions markets in Asia focused on incoming global "risk" events like the Brexit vote and the Fed meeting which led to a deterioration of moods and helped the greenback regain some momentum. GBP was one of the weakest currencies on G10 as recent poll showed that 55% of respondents support Brexit. 

    As well as the FOMC and BOJ meetings next week there’s several other major economic releases. UK CPI and the Bank of England meeting top the bill for UK focused traders, whilst the US retail sales will be important for the US dollar after the recent weak NFP print. 

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.


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