IronFX Daily Commentary by Marios Hadjikyriacos | 26/05/2017
May 26, 2017 9:15 am
Oil prices drop on a “buy the rumor, sell the fact” trade • OPEC and non-OPEC producers agreed to extend their output-cut deal by 9 months, at the previous volume of 1.8mbpd. • Despite the producers reaching an accord, oil prices dropped in the aftermath of the event. • This looks like a “buy the rumor, sell the fact” trade, considering that an extension of 9 months was very widely anticipated by markets. • Also, investors who were looking for a longer extension or deeper cuts may have been disappointed. • Moving forward, we stick to our view that a long-term healthy uptrend in oil prices is still unlikely. • The continued increase in US production is likely to keep a lid on any significant price gains.
Sterling takes a hit from an election opinion poll • The British pound tumbled overnight, following a YouGov opinion poll on the upcoming UK election. • It showed that although the Conservatives are still ahead (43%), Labour is catching up (38%). • Any fresh polls that show Labour narrowing the gap further could keep sterling under pressure.
Today’s highlights: • US: Durable goods orders for April (12:30 GMT). The headline print is expected to have declined, the core figure to have risen. We see the risks surrounding the core figure as skewed to the downside, perhaps for a smaller-than-expected gain. May prove USD-negative. Also, we get the 2nd estimate of GDP for Q1, but this may attract less attention than usual. • Speakers: ECB Executive Board member Benoit Coeure.
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Oil prices drop on a “buy the rumor, sell the fact” trade
• OPEC and non-OPEC producers agreed to extend their output-cut deal by 9 months, at the previous volume of 1.8mbpd.
• Despite the producers reaching an accord, oil prices dropped in the aftermath of the event.
• This looks like a “buy the rumor, sell the fact” trade, considering that an extension of 9 months was very widely anticipated by markets.
• Also, investors who were looking for a longer extension or deeper cuts may have been disappointed.
• Moving forward, we stick to our view that a long-term healthy uptrend in oil prices is still unlikely.
• The continued increase in US production is likely to keep a lid on any significant price gains.
Sterling takes a hit from an election opinion poll
• The British pound tumbled overnight, following a YouGov opinion poll on the upcoming UK election.
• It showed that although the Conservatives are still ahead (43%), Labour is catching up (38%).
• Any fresh polls that show Labour narrowing the gap further could keep sterling under pressure.
Today’s highlights:
• US: Durable goods orders for April (12:30 GMT). The headline print is expected to have declined, the core figure to have risen. We see the risks surrounding the core figure as skewed to the downside, perhaps for a smaller-than-expected gain. May prove USD-negative. Also, we get the 2nd estimate of GDP for Q1, but this may attract less attention than usual.
• Speakers: ECB Executive Board member Benoit Coeure.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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