EUR/USD came under renewed bearish pressure in the second half of the day and dropped to the 0.9850 area. The dollar rally picked up steam after the ADP employment report and the ISM Services PMI survey, weighing heavily on the pair.
GBP/USD has extended its daily slide and dropped below 1.1300 in the second half of the day on Wednesday. The unabated dollar strength on the back of upbeat ISM Services PMI and ADP Employment Change data forces the pair to continue to stretch lower.
Spot gold gave up part of its weekly gains on Wednesday and dipped to $1,700.47 a troy ounce, quickly bouncing afterward towards the current $1,712 price zone. The American dollar made a nice comeback as the market sentiment deteriorated.
Welcome back to the deep dive series where this time we focus on Visa (V), the global payments company. Perhaps somewhat timely as consumers begin once again to turn to credit in the face of a pending recession and inflation.
Brent Oil (or Brent Crude) is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. It is extracted from the North Sea. Brent oil contracts in the ICE (Intercontinental Exchange) are quoted in US dollars. It is the benchmark used primarily in Europe though it is also mixed in with the OPEC Reference Basket which is used around the world. Brent blend makes up more than half of the world's globally traded supply of crude oil. Crude oil is the highest volume contract that is traded worldwide for a physical commodity.
USD/CAD, AUD/USD and NZD/USD are called “commodity pairs” because they are highly correlated to commodity (especially oil) fluctuations.
When making trading decisions in the commodity pairs, it might be a good idea to take a look at the correlated commodities because it can help to predict future up or down movements.
HISTORIC HIGHS AND LOWS FOR BRENT OIL
All-time records: Max:147.27 on 07/07/2008 - Min: 9.75 on 31/03/1986
Last 5 years: Max:86.71 on 03/10/2018 - Min: 26.08 on 11/02/2016
* Data as of February 2020
ASSETS THAT INFLUENCE BRENT OIL THE MOST
Commodities: Natural Gas.
Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).
Indices: BRENT Index (the cash settlement price for the Intercontinental Exchange (ICE) Brent Future based on ICE Futures Brent index at expiry) and WTI (West Texas Intermediate is a grade of crude oil used as a benchmark in oil pricing, the underlying commodity of NYMEX's oil futures contracts).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE BRENT OIL
Weekly crude inventories (that represent the supply of oil) are very closely watched by traders, in particular those reported by the EIA (Energy Information Administration) and the API (American Petroleum Institute).
On the other hand, an important indicator of underlying oil demand growth is the world GDP growth rates (in periods of recession, the consumption of oil tends to fall).
On how supply (inventories) and demand affect the price of oil, we recommend you to watch this short video.
In terms of influent people and organizations for the brent oil, we highlight:
Mike Sommers is the 15th chief executive of the American Petroleum Institute (API) since its founding. API is the largest national trade association representing all aspects of America's oil and natural gas industry. Before being named API's president and CEO, Sommers led the American Investment Council, a trade association representing many of the nation's leading private equity and growth capital firms and other business partners.
Mohammad Sanusi Barkindo, OPEC’s Secretary General since August 2016. He previously served as Acting Secretary General in 2006, represented Nigeria on OPEC's Economic Commission Board during 1993–2008, led the Nigerian National Petroleum Corporation during 2009–2010, and has headed Nigeria's technical delegation to UN climate negotiations since 1991. The Organization of the Petroleum Exporting Countries is a permanent, intergovernmental Organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
US Oil & Gas Association, was founded in October 1917 in Tulsa, Oklahoma, following the United States’ entry into World War I. This trade association “promotes the well-being of the oil and natural gas industries in the United States”.
Vladimir Putin, who has served as the president of Russia since 2012, previously holding the position from 2000 until 2008.