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Old 14-12-2020, 16:26
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

EUR/USD. December 14, 2020 – Euro remains in local highs

Euro continues to feel confident in the area of ​​local highs. The couple is stable, even despite the fact that there is no progress with vaccines as such, however, there is still a strong optimism on the market about an early vaccination, which supports interest in risky assets. The current quote for the EUR/USD pair is 1.2160.

Today the macroeconomic calendar is almost empty. Only the data on the volume of industrial production in the euro zone in October will attract attention: the forecast assumes an increase of 1.8% m/m against a decline of 0.4% m/m in September.

The ECB meeting last week did not please the bears either. The European regulator did not give any signals regarding further monetary policy and the high rate of the single currency. Moreover, the situation with Brexit no longer scares investors, which also allows the euro to remain in the highs.

Experts note that the meeting of the US Federal Reserve may become the only factor that can cool the ardor of sellers. It is known that the Fed is not going to launch a «twist», which, together with the lack of plans for fiscal stimulus, may provide visible support to the dollar.

Brent. December 14, 2020 – Oil returns to February highs

Brent crude oil prices rise on Monday, trading at $50.50 a barrel. The asset is supported by general market optimism regarding the imminent mass vaccination against coronavirus, which should restore global demand for fuel. Vaccinations are starting in the United States today, which gives hope for the lifting of quarantine restrictions in the near future.

Prices were further supported by an explosion on a tanker in a Saudi port, raising concerns about a possible disruption to supplies. Shipping company Hafnia reported an explosion on one of its tankers following an «external unidentified object strike» while unloading at the port of Jeddah.

However, the problem of falling demand is also exacerbated by an increase in supply. On Friday, Baker Hughes announced an increase in the existing oil rigs in the US by 12 units, to 258. Earlier, the OPEC + countries also agreed to increase oil production by 500 thousand barrels, starting in January 2021. Given that the threat of oversupply is becoming more real, a reversal in the oil market could occur at any time.
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