View Single Post
  #421  
Old 17-12-2020, 14:11
KostiaFM's Avatar
KostiaFM KostiaFM is offline
Level V Lasers Member
 
Join Date: Mar 2019
Posts: 680
Default Re: Daily Market Analysis by ForexMart

Brent. December 17, 2020 – Oil has updated the maximum in 9 months after the US Federal Reserve meeting

Brent crude hit a 9-month high on Thursday after the Energy Information Administration (EIA) reported declining US inventories last week. The current Brent price is $51.80 per barrel.

According to yesterday's statistics, crude oil inventories in the United States fell by 3.135 million barrels over the week (to 500.1 million barrels), which was better than the forecast for a decrease of 1.9 million.

Additional support to the asset is provided by some progress in the discussion of the issue of fiscal stimulus in the US Congress, as well as strong demand for oil in Asia. American lawmakers yesterday came close to an agreement on measures to support the economy in the amount of $900 billion.

At the same time, the US dollar was again under pressure. This time, the driver of the weakening of the currency was the results of yesterday's meeting of the US Federal Reserve: the regulator kept the rate at 0-0.25% per annum, while predicting that the rate would remain at this level until 2023.

GBP/USD. December 17, 2020 – Sterling has renewed its maximum in 2.5 years

The British currency continues to update maximum after maximum. The current quote for the GBP/USD pair is 1.3570. The last time such values ​​were recorded in mid-May 2018.

The pound is growing amid weakness in the US dollar and strong business activity in the UK. Manufacturing activity in the country in November rose to 57.3 points after rising to 55.6 in October. At the same time, activity in the service sector was in the red zone.

Further support for the pound is provided by the progress in negotiations between the UK and the EU on the controversial Brexit issues. The head of the European Commission, Ursula von der Leyen, said that there is «a way to an agreement» and in fact, the deal could be concluded in the next few days. Moreover, Britain has signed a customs agreement with the United States, ensuring business continuity.

At the same time, the results of yesterday's meeting of the US Federal Reserve System exerted strong pressure on the dollar rate. The US regulator kept the target range for the federal funds rate at 0-0.25% and said it intends to maintain this range until conditions in the labor market reach peak employment levels and inflation approaches 2%.
Reply With Quote