Fresh US sanctions to push Oil prices higher
Sanctions over Russia
The US imposed new sanctions over Russia. The companies Rosneft and Lukoil, who are supposed to support the Russian war machine are the two biggest oil companies in Russia. This is the first time since Trump took over Oval Office that he imposed direct sanctions. The President pointed out further that he hopes that the measures won’t be in for too long, giving Puting the chance to get them settled if the stops the war in the Ukraine. As a direct result oil prices went higher. The price for USOIL went from USD 57 above the USD 60 level now trading at USD 49.10.
Market talk
Markets remain unclear and show no fresh directional movement. The Dollar shows signs of potential positive momentum, which might also harm equities from moving higher. The S&P, Nasdaq as well as the DAX keep lagging behind new highs. A breakout above technical resistance zones is needed to unleash a potential sharp move higher. The DAX kept trading lower off the resistance at 24.500. Downside momentum might now follow. This can also be seen in the crypto market, which keeps losing steam as well. With no new motivation most tokens proceed down. Positive momentum might be seen with the FED next week. A potential rate cut due to weakening employment data might help markets giving them a lift to higher levels again.
Tendencies in the markets
- Equities sideways, USD stronger, BTC negative, ETH negative, oil positive, Silver sideways, Gold positive.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
