Oil prices to bounce back in the coming months – CE

FXStreet Insights Team FXStreet

Last week, oil prices fell back as the demand outlook in Asia deteriorated. However, assuming that the latest virus outbreaks are contained before too long, strategists at Capital Economics remain relatively optimistic on the global oil demand outlook, and expect prices to reverse course before long and rise in the months ahead.

The OPEC+ meeting on Wednesday is a key event

“We still think that global demand will boom in the coming quarters, led by the US. The progressive easing of quarantine measures there should continue to lift travel mobility and demand for products, such as gasoline.”

“We don’t expect OPEC+ to make any major changes to production quotas given that oil prices are only slightly above their level at the previous meeting and the demand outlook appears broadly similar.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD holds recovery near 1.3400 as US-Iran tensions ease

GBP/USD finds some support near 1.3370 and holds onto its recovery near 1.3400 on Monday. The pair rebounds as the US Dollar loses its haven demand amid receding Mideast tensions after Iran confirms mediation efforts with the US. All eyes remain on Mideast updates and central bank talks.

EUR/USD rebounds toward 1.1450 on renewed USD weakness

EUR/USD bounces back toward 1.1450 in European trading on Monday. The pair finds fresh demand as the US Dollar slips amid US-Iran diplomacy hopes, following the weekend escalation. Hawkish ECB expectations also support the major's upside ahead of speeches from the Fed and ECB policymakers.

Gold pares losses; keeps the red below $4,100 on hawkish Fed bets

Gold trims a part of its intraday losses during the first half of the European session, though it retains the negative bias for the second straight day and remains below the $4,100 mark. The US Dollar (USD) attracts some intraday sellers and supports the bullion. Any meaningful upside, however, still seems elusive amid a bearish fundamental backdrop.

Bitcoin retreats as Middle East conflict overshadows ETF inflows

Bitcoin struggles to hold above $64,000 after a modest recovery the previous week. Risk sentiment dampens as tensions in the Middle East escalated after the US launched fresh strikes on Iran on Sunday, weighing on BTC. Meanwhile, improving institutional demand, with spot Bitcoin Exchange Traded Funds ending an eight-week streak of net outflows, has provided only limited support amid rising geopolitical uncertainty.

The US won't default on $39 trillion debt: Why financial repression is coming and Gold is the only hedge

As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system. With a formal default out of the question and fiscal austerity politically unfeasible, the US government is increasingly likely to rely on financial repression, artificially keeping interest rates below inflation to erode the real value of its debt.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.