Oil once again rose to the highs of Friday despite a new wave of negativity.
Last week, Trump persuaded Russia and OPEC to return to the negotiating table regarding the reduction of oil production and supplies to avoid a catastrophic fall in the asset. The meeting was originally scheduled today, April 6. However, in one of his speeches, the President of Russia accused Saudi Arabia of disrupting the Russia-OPEC deal. In response, Saudi Arabia publicly stated that the Russian President was lying about this issue, claiming that it was Russia who withdrew from the agreement. As a result, the Russia-OPEC meeting has been postponed until April 9, and there are doubts whether the meeting will take place. Nevertheless, oil is still holding above $ 25. Production should be reduced by about 10 million barrels. Otherwise, the market will not be able to hold any longer.
Trump said that if OPEC and Russia do not reduce oil production, duties against oil imports to the United States will be imposed so that oil prices inside the country will be supported and oil producers will be saved from bankruptcy.
Update on the coronavirus:
As of Monday morning, Europe has clearly passed the peak of the pandemic, and the worst is probably over. The number of deaths per day in Italy has clearly fallen, as it is not 525, from a maximum of about 1000. In Spain, although the number of deaths is 700 per day, it is also declining.
As for US, which is the current center of the pandemic, the number of confirmed coronavirus cases is 336,000. The positive news is: the increase in the number of infected people per day is now around 25,300, which is significantly lower than + 10%. Meanwhile, the number of deaths is growing so far, at around 1,165 per day.
Until US passes the peak of the pandemic, we can not talk about any stronger factors for the markets.
News on the US labor market: nonfarm payrolls came out as minus 700 K for March.
The latest weekly reports showed an increase of +3.3 and +3.6 million in the applications for unemployment benefits. The market is now waiting for new data.
The market is also waiting for the Fed’s report from the last meeting.
Surprisingly, the EUR / USD pair did not react in any way to the disastrous reports on unemployment in the US last Thursday and Friday. It seems that the major players are in complete disarray, due to the current crisis in the economy, and the huge injections of money from the Fed, the ECB and the governments.
Nevertheless, we are ready to sell euro at the break of 1.0635 downwards, and buy euro at the break of 1.1040 upwards.
The material has been provided by InstaForex Company – www.instaforex.com
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