Fall of WTI and Brent, volatility of NZD, new Fed chairman this week? [Video]
Welcome to this week’s Market Blast Fundamentals.
I’m Brad Alexander, and on behalf of Valutrades today we will be looking at NZDUSD, EURUSD, EURGBP, Gold (XAUUSD), Brent (UK Oil) and WTI (US Oil).
Before you start, don’t forget to register for tomorrow’s webinar on trading opportunities using Valutrades real-time signals, and you can find details on the Valutrades website.
We can see from these daily charts on WTI and Brent Crude that the price has fallen below $ 77 and $ 79 respectively, as markets await news on the release of oil reserves.
Joe Biden asked OPEC to keep production going; he also asked Japan to release its reserves; and European COVID closures have meant demand may not return very soon, so crude may fall further.
Gold has fallen below the $ 1,850 level and we’ll look at that from a technical perspective tomorrow.
New COVID lockdowns have kept the price of gold higher, but pressure from a stronger US dollar could pull XAUUSD lower, if a new Fed chairman decides to speed up the process reduction and consider raising interest rates sooner.
We can see a stronger USD, but watch the US GDP numbers, home sales and core durable goods orders this week.
Bank of England Governor Andrew Bailey will speak on Thursday to explain his take on inflation and investors will be looking for more clues about the next interest rate hike.
In addition, it is possible that the Reserve Bank of New Zealand will be the first of the major economies to raise interest rates and we are seeing mixed views on the NZD, but we expect volatility and large business opportunities Wednesday.