The US dollar is surging — and that could soon place an ‘unbearable burden’ on the oil market, analyst says
- Investors are currently seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as broad greenback strength and a ramp-up in production by OPEC and its allied partners.
- Typically, crude futures trade inversely to the greenback. A stronger dollar makes oil more expensive to much of the world, so oil prices tend to fall as the dollar rises.
- “It feels like self-harm at the moment in the oil market,” Paul Hickin, EMEA oil analyst at S&P Global Platts, told CNBC’s “Squawk Box Europe” on Monday. Read @ https://www.cnbc.com/2018/08/13/oil-prices-dollar-strength-could-soon-become-an-unbearable-burden.html?__source=twitter%7Cmain
Market wants ‘decisive action’ so Turkey needs to raise rates: Yale economist Stephen Roach
- Turkey’s central bank needs to raise interest rates to contain the country’s financial crisis, says veteran economist Stephen Roach.
- “The markets clearly want much more decisive action,” he says.
- What’s most worrisome is not the cumulative decline in the Turkish lira but the speed of the fall, Roach says. Read @ https://www.cnbc.com/2018/08/13/market-wants-decisive-action-turkey-needs-to-raise-rates-roach-.html
China may well offer financial help to Turkey, but it will not turn around the troubled lira
- There will be some minor news from Australia and China this morning but little or no volatility is expected.
- 2.00pm – German GDP will create good volatility – expected to be better then previous month.
- 2.45pm – France & Euro will release their CPI data – Volatility is expected.
- 4.30pm – UK will release their average earnings – GBP expected to be volatile.
- 5.00pm – EUR will release their GDP data and is expected to be no change. SELL Focus.
- 5.00pm – German and EURO will release their ZEW economic data – It’s a leading indicator of economic health – investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity; expected to be no change.
- Mortgage delinquencies data will be release tentatively and is a leading indicator for US – is expected to be good.
Overall the market is still in favor for the USD. Always keep teh money management in-tact.
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