MARKET DEVELOPMENT – Crude Oil Surges on OPEC Jawboning, US May Avoid Another Shutdown
USD: The US Dollar has given back some of its recent gains, having failed to hold above the 97.00 handle, which in turn has provided a relief for major G10 currencies. Overnight, reports had emerged that lawmakers believe it is likely that the US could avoid another shutdown following the bipartisan agreement that would give $1.4bln to border security (President Trump previously demanded over $5bln). As such, the decision is now left for Congress and President Trump.
EUR: The Euro has seen a modest bounce back from 1.1250, while the near-term base remains at 1.1215. Support in the Euro has also coincided with the bid seen in EURCHF (+0.6%), coupled with the tightening of the Bund/BTP spread. EURUSD now looking to test 1.13 to the upside, despite more cautious commentary from ECB officials with Klaas Knot signalling concerns over ditching stimulus.
Oil: Brent and WTI crude futures have surged over 2% amid jawboning from Saudi Arabia and OPEC. Reports in the FT stated that Saudi Arabia were to cut production further to 9.8mbpd (500kbpd below target), while the Algerian Energy Minister noted that OPEC could cut production further at the next meeting (April). Focus now turns to tonight’s API crude inventory report.
DailyFX Economic Calendar: – North American Releases
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- “Technical Outlook for EUR/USD, Gold Price, Crude Oil & More” by Paul Robinson, Market Analyst
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- “Crude Oil Analysis: Oil Rises on Aggressive Saudi Action” by Justin McQueen, Market Analyst
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--- Written by Justin McQueen, Market Analyst
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