Global macro overview for 20/11/2017
November 20, 2017 2:25 pmVideo
Latest News
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- Forecast for GBP/USD on April 18, 2024 April 18, 2024
- Forecast for AUD/USD on April 18, 2024 April 18, 2024
- Outlook for GBP/USD on April 18. Pound was not impressed by the inflation data April 18, 2024
- Outlook for EUR/USD on April 18. Euro has fallen into a new flat April 18, 2024
- GBP/USD. Correction or trend reversal? April 18, 2024
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
- Analysis for GBP/USD pair on April 17th. British inflation overtakes American inflation April 17, 2024
- USD/JPY: Simple Trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- EUR/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURUSD takes a breather after sharp tumble April 17, 2024
- Market continues to price in a plethora of rate cuts for 2024 – Special Report April 17, 2024
Venezuela has gone bankrupt.
International Swap and Derivatives Association (ISDA) has announced that Venezuela has gone bankrupt. The same verdict was announced in the case of the state-owned fuel concern Petroleos de Venezuela SA. The unanimous decision of the ISDA committee, in which the blatant delays in regulating the obligations of both entities constitute the so-called “credit event” opens the way for a credit default swap (Credit Default Swap).
According to Reuters, the ISDA committee will meet again today to decide on an auction mechanism that will determine the number of payouts for CDS owners. The agency underlines, however, that the Venezuelan ($ 1.3 billion) and PDVSA ($ 250 million) contract market is not too large compared to the size of the debt. The market for both entities is $ 60 billion, while private-equity estimates say $ 140 billion. On Sunday, a 30-day period has gone in which Venezuela could delay the payment of interest of $ 200 million due to bonds maturing in 2019 and 2024. As a result of this failure, the S&P rating agency downgraded Venezuela’s rating to SD for “selective insolvency”. In turn, Fitch rating agency announced the insolvency of PDVSA.
The risk of formal bankruptcy by Venezuela has been hanging over the market for several months. The country has been balancing on the solvency curve for a long time, with a hard time adjusting its liabilities in US dollars. The sanctions imposed by the US government deterred US investors from buying Venezuelan bonds.
Let’s now take a look at the Crude Oil technical picture at the H4 time frame.as Venezuela is among the global leaders in the oil industry. The market has bounced from the important support at the level of $55.26 and the bulls have managed to break out above the technical resistance at the level of $56.38. Currently, the market is trading in the middle of the range and there are no signs of panic buying or selling due to Venezuelan bankruptcy. The nearest resistnace is seen at the level of $57.70.
The material has been provided by InstaForex Company – www.instaforex.com
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