You need to be logged in to view this content.
Summary
The Day So Far…
Watching the journalists jostling for position at the OPEC meeting is always a sight to behold and why OPEC insist on publishing a tentative schedule is beyond me. None the less, as per usual there was no need to wait for the official closing speech this afternoon and just after 9am the ‘cat was let out the bag’ and OPEC confirmed a 9-month extension to the current production cuts. The reaction was somewhat inevitable and after squeezing up to $52/bbl level this morning, marking a near 18% gain since the 5th May, the confirmation of the deal acted as a moment to book profits on those long positions prompting a sharp drop in prices exacerbated by momentum based algo’s jumping on the activity. Once the OPEC circus leaves town my bias still sides with oil feeling the weight of the dual force of increasing US output and OPEC compliance issues in the medium-term and when the US come into market it will be interesting to see how they interpret the decision with the $50 handle a key level on the downside.
Latest Live Videos
Editors’ Picks
EUR/USD: Yes, the US economy is resilient – No, that won’t save the US Dollar Premium
Some impressive US data should have resulted in a much stronger USD. Well, it didn’t happen. The EUR/USD pair closed a third consecutive week little changed, a handful of pips above the 1.1800 mark.
Gold: Metals remain vulnerable to broad market mood Premium
Gold (XAU/USD) started the week on a bullish note and climbed above $5,000 before declining sharply and erasing its weekly gains on Thursday, only to recover heading into the weekend.
GBP/USD: Pound Sterling remains below 1.3700 ahead of UK inflation test Premium
The Pound Sterling (GBP) failed to resist at higher levels against the US Dollar (USD), but buyers held their ground amid a US data-busy blockbuster week.
Bitcoin: BTC bears aren’t done yet
Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.
US Dollar: Big in Japan Premium
The US Dollar (USD) resumed its yearly downtrend this week, slipping back to two-week troughs just to bounce back a tad in the second half of the week.
Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight
US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.