Malcolm Graham-Wood
Independent Analyst
With the US closed on Friday the prices above are the opening ones from London this morning, markets are naturally cautious and have continued the fall from the end of the week. WTI fell 6.91% and Brent was down 4.65% on the week, a number that might have been worse one suspects. A combination of higher stocks, an increase in the oil rig count and a potential deal with Iran not surprisingly kept the market subdued not to mention Greece.
The situation in Greece probably has more of a currency effect on the oil market and traders will be watching the dollar closely into the bargain but rate rises in the US appear to be being talked down a touch in recent days.
Probably of more significance is the likelihood of a deal with Iran in the nuclear talks. The next technical deadline is tomorrow but John Kerry has said that it may be this week and that there is ‘every chance of success if all parties pull together’. The real key date is Friday as the 10th is the 30 day review deadline day for the US Congress, if it misses this we are talking September 7th so expect something either way this week.
The elusive KRG bond issue is still being talked around but bond guru Marcus Ashworth tells me he hasn’t seen any signs of a raise in what must be a difficult and very specialised market. In Brazil it looks like Congress there will pass a bill allowing other companies than Petrobras to be operators of offshore fields, a move that the likes of Shell will welcome
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.