24th February 2020 was when the last time we saw oil hovering around the $55.80 mark. The Oil markets were hammered in 2020, taking investors and traders back to their economics 101 classes.
However, unlike traditional markets, the Oil markets have something traditional markets do not – controlled supply.
OPEC+ controlling the supply of Oil
OPEC+, a 24-...
Hello! I hope you guys had a good Christmas and a Happy New Year, refreshed for the trading year. Before your week ahead, here is what you may have missed over the break.
Vaccine rollouts have started all across the world, primarily in the United States and in the United Kingdom
OPEC+ Implemented a surprise cut that has become a tailwind for the price of...
Margaret Keenan. At 90 years old, she was the first patient in the United Kingdom to receive the Pfizer-BioNTech. The CEO of England’s NHS, Simon Stevens, stated that “I think there’s every chance that we will look back on as marking a decisive point in the battle against the Coronavirus” You would have thought we should have seen a massive spike in the markets....
All eyes will be on the UK’s rollout of the Pfizer-BioNtech vaccine this week ahead, as the first western country to approve a Coronavirus vaccine starts to vaccinate front line workers. However, the NHS medical director warned the vaccine distribution would be a “marathon, not a sprint” and that it will take “many months” to vaccine everybody who needs it. Is...
The Cable rallied to 1.3497, the highest it has been since 2019. This is shy of that healthy psychological resistance level of 1.35. Strong dollar weakness, alongside risk on consensus, has compounded to push the pound higher.
GBPUSD pricing in Brexit
Furthermore, with Brexit negotiations in full swing, there is hope that a deal will occur before year-end,...
Is this the beginning of the end? The UK announced yesterday that they have provisionally approved Pfizer’s Coronavirus vaccine. This makes the UK the first country to approve a vaccine, which they state will be available to individual members of the public by next week.
Vaccine rollout next year
Simon Steve, Chief Executive of the NHS, stated that the bulk of...
Stocks reach all-time highs on vaccine optimism. The NASDAQ 100 and the S&P 500 are up 1.75% and 1.39%, respectively, with financials, utilities, and communication services being the largest gainers. The Dow Jones is also up around 1$ – however, still below that 30,000 mark. Across the ditch, cyclical in the UK was getting a bid, up around 2% after Goldman Sachs...
EUR/USD hit 1.20 on the last trading day before bouncing off the strong psychological resistance level. This is due to further dollar weakness alongside investors pricing in aggressive quantitative easing from the Fed outpacing the European Central bank. The EUR/USD is up around 2.3% this month.
EUR/USD will be boosted once a Vaccine is passed
Moderna is...
The oil markets have been seeing the light as of late. Oil prices have reached an eight-month high, with WTI and Brent Crude trading around $45 and $48. This is from the recent positive vaccine news, alongside better than expected EIA data and geopolitical supply-side tensions.
Oil supply and demand fundamentals are getting brighter
Peter McNally, global head...
Gold continues to fall on positive vaccine news, as both Pfizer and Moderna reveal trials that show 90%+ efficacy vaccines against the Coronavirus.
Gold breaking key technical factors
Gold breached a fundamental Fib level at $1,835, looking for a next internal support/resistance level at $1,800 and the 50% retracement level at $1,761.
Gold flowing out of...
There’s a saying the markets have adopted over time: “Buy the rumor, sell the news.” And the cryptocurrency market is no exception. Bitcoin has recently propelled itself to $18,000 – with minimal coverage on the news if we compared its coverage in 2019. However, another rule that I personally go by – If your mum is talking about it, it’s a strong signal to sell....
Two main fundamental factors depressed the GBPUSD for the past couple of years—Brexit, and now recently, the Coronavirus.
The trade is relatively simple – once there is a vaccine for the Coronavirus, alongside certainty on Brexit talks, a good case can be made for the pair to reach its Pre Brexit/Pre Coronavirus levels around 1.45
Pound needs to meet two...
Dollar is going one way once the vaccine is out
The dollar has fallen from grace from the peak of the Coronavirus. The dollar index is down 10% from its yearly high in March, where traders and investors went to cash.
However, with two strong positive results from two vaccine makers Pfizer and Moderns with their 90% efficacy with their vaccine trial, solid news on...
Oil is currently hovering at two-month highs. Brent, the global benchmark of Oil, now sits comfortably above $44 a barrel, approaching a strong resistance area of $45 and $46 a barrel.
Oil has retested this resistance level multiple times in the past couple of months, with price rejecting the area firmly due to weak fundamentals.
Oil and it’s past weak...
Are we going to see the NZD/USD at 0.74? With Joe Biden most likely to be the next President, many predict a de-dollarization to occur as the opportunity cost of investing in the United States is expected to decrease, placing pressure on the greenback downwards.
NZD/USD – Countries are polar opposites
This pair is interesting, as both countries are on the...
When all is well and good, Joe Biden is most likely to be the 50th President of the United States. We can finally put the election behind us and focus on the recovery of the economy stemming from the effects of the Coronavirus. Here is your week ahead.
Monday, 9th and Tuesday 10th November – Bank of England’s Governor Andrew Bailey Speech
The elections drew our...
Gold has rallied as the election has slowly been unfolding. Currently, Gold has been hovering at $1,950. However, is this because it’s a safe haven? Or is it because Gold has a “risk-on” sentiment associated with it?
Barrick Gold seems to think it’s the former. The company, which Warren Buffet recently invested $600 Million in, recorded an almost threefold...
As predicted by many analysts, the Reserve Bank of Australia has slashed rates from 0.25% to 0.1%, a 15-point cut. Furthermore, they’ve decided to buy back over $100 Billion government bonds of maturities around 5 to 10 years over the next six months.
The Australian Dollar again, the U.S dollar was down slightly at 0.44%. The ASX 200 was up around 1.88% on the...
