Will oil be able to maintain its current level?

By 23/10/2020News
Morning Stock News

Gold  1905,80
(+0,10%)

EURUSD   1,1802
(-0,15%)

DJIA  28282,50
(+0,10%)

OIL.WTI  40,53
(-0,17%)

DAX   12538,70
(+0,01%)

Every day starts with the same thing. Investors are waiting for the outcome of negotiations on financial support for business in the USA. Information appears that the parties tend to approve a $2 trillion package.

BTC

BTC

On Thursday, the indices again show mixed trends. It is difficult for investors to make decisions when it is not clear what lies ahead. News about the financial aid package even overshadows the statistics on the coronavirus pandemic, which is gaining momentum day by day in almost every country in the world.
On Thursday late in the evening, the US is hosting the last pre-election debate in which candidates will try to tilt the scales in their favour. Election day is getting closer every day. Of course, the acceptance of the aid package will bring life back to the markets, and at this point it is important who will be in charge of this process.
The forecast is still disappointing. If no aid package is accepted before the election, indices are likely to fall slowly to the election result, because there are no drivers for growth and you don’t want to sell either, because something positive should happen after the election anyway.
The DAX closed on Thursday at 12543, 0.12% below its opening level.
The S&P500 index was traded just above the opening price at 3445.


Euro

The EUR/USD pair is moderately declining on Thursday, and this is logical after this week’s rise. The current EUR price is more a local condition than a trend reversal. The dollar is losing positions every day and will lose even more after the financial aid measures are taken. The EUR/USD keeps its growth potential at 1.20. The dollar is still among the outsiders in the market and should support the growth of the Euro.


Oil

The price of WTI oil was delayed in the range of 40-41 dollars per barrel. The growing second wave of coronavirus has stopped the growth in consumption and demand for gasoline and oil. Many people just stay home and do not spend fuel.
The price of oil depends directly on the results of the US elections. If the Democrats win, they are likely to try to return the markets of Iran and Venezuela to export. In that case, a lot of cheap oil will contribute to the commodity market.


What awaits us today?

10.00 IFO German Business Climate Index for October
10.30 UK PMI Composite Index for October
19.00 Total and active number of drilling rigs in the USA from Baker Hughes


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