OPEC Signals Bearish Crude Oil Outlook, GBP Corrects Higher - US Market Open
EUR: Commentary from one of the most dovish ECB members, Olli Rehn, has pushed the Euro lower with the rate setter noting that the ECB should over-deliver with rate cuts and a restarting of QE. As it stands, money markets expect 15bps worth of easing in the depo rate, however, the focus will be on the composition of QE2 in September. Alongside this, eyes will be on the other ECB members to gauge the consensus pertaining to an ECB QE package in September. Elsewhere, Italian political risks could keep the Euro on the backfoot amid the potential no-confidence vote on Tuesday.
GBP: The Pound is notably firmer this morning with gains largely stemming from the corrective pullback observed in EURGBP, which trades lower by 1%. The absence of notable Brexit related news flow has kept the modest Sterling uptrend intact.
Oil: OPEC lowered their global oil demand forecast for 2019 by 40kbpd to 1mbpd. Alongside this, they highlighted that the outlook is likely to be bearish throughout the remainder of the year, consequently sparking a pullback in the energy complex.
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