On Monday, US dollar shows strong growth against most major currencies. The British pound, being under the next inflow of negative Brexit news, heads the weakening of currencies. The euro, for its part, is traded around new 17-month low (1.1240). Equity markets are mixed. In Europe, Dow Jones Stoxx 600 is losing about 0.5%. The only sectors moving forward on Monday are energy and materials. Oil prices are trading volatile in response to OPEC news over the weekend, which is expected to lead to a decrease in oil supplies next month. Saudi Arabia has indicated that in December it would export 500 thousand barrels per day.
Although some European officials, such as EU President Juncker, are still optimistic that in the coming weeks officials can make a deal with the EU-UK, the market has now become more skeptical. The resignation of Transport Minister Joe Johnson at the end of last week who was taking a pro-European position seems to be a new challenge for the British Prime Minister an e new negative middle-term signal for GBP.
The key problem is the Irish border. Some eurosceptic proposed an alternative. The UK would pay half the bill for a divorce of £ 20 billion to ensure the friendliest division that would follow a 21-month transition period in which everything will remain the same.
The new trading week for oil market opened with the correction after the establishment of new multi-month lows on Friday. In total, a little more than a month, Brent crude oil lost in the price of about 19% of the annual maximum set in early October. Last week, Brent quotes slipped by 3.6%, WTI by 4.7%. At the same time, WTI quotes fell over 10 trading days in a row, which is the longest period of decline since 1984.
The wave of sales in the oil market was triggered by prospects for changing the ratio of supply and demand in the oil market amid signals on a slowdown in global economic growth. The fears on increasing production from major market players such as the United States, Russia and Saudi Arabia are suppressing the price. In aggregate, all these factors have seriously changed the balance of forces in the market.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications