Is the oil market in danger?

By 17/06/2020News
Morning Stock News

Gold   1693,50
(-1,89%)

EURUSD   1,0799
( -4,10%)

DJIA  24115
(-8,35%)

OIL.WTI  25,095
(-33,80%)

DAX   10609
(-13,74%)

It is so interesting to watch the struggle between bulls and bears. The market is now fully covered by the problems of economic recovery and the latest macroeconomic data on retail sales and production activity growth in the U.S. have sent the major indices even higher.


DAX

DAX

As soon as positive statistics are released, investors seem to forget about all other problems in the world economy. With such good news from the USA, European markets are showing excellent growth. The DAX index has grown by 3.39%, the S&P500 index is approaching record levels again and is trading at 3130. Against the background of additional stimulus measures by the US Federal Reserve, growth is likely to continue. Breaking through serious levels of resistance remains in question, although many are waiting for it.


Euro

Euro remains fairly stable amid the announcement of additional asset purchases from the US Federal Reserve. Of course, we understand that there are no big reasons for growth now, but we do not see them for falling either. From the top the level 1.14 looks almost impassable, but down there is somewhere to go. In the near future, the EUR/USD pair will be traded in a small range, not exceeding 200 points.


Gold

There is a very interesting situation in the market. The price of gold rises along with the price of risk assets. So we can judge that there is already too much money in the world system to correlate these trading instruments somehow. In gold, the prognosis doesn’t change. The world economy is still very far from recovery from the crisis, and gold is ready to renew its highs at any moment. On Tuesday gold trades at $1730 per ounce.


Oil

The oil market is very tense. Although we are seeing a positive trend with the WTI oil price, any complication in the oil consumption situation, such as another quarantine, can quickly send the cost of the barrel to the levels of late April. Repeated outbreaks of coronavirus in China are making the whole world tense. There’s no upside to going. The level of $40 per barrel is still the maximum and it is not a fact that we can pass it this summer.


What’s waiting for us today?

08.00 UK consumer price index for May
11.00 Basic consumer price index in the European Union for May.
14.30 Basic consumer price index from the Bank of Canada for May


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