EUR/USD. January 13, 2021 – The pair cannot determine the movement vector
The EUR/USD pair continues to trade in different directions, fluctuating within the range of 1.2130-1.2230. The current quote for the euro is 1.2165.
Yesterday the dollar weakened across the entire spectrum of the market amid declining yields on US government bonds. Today, the US currency has turned around and is showing corrective growth.
Today you should pay attention to the publication of inflation data for December. Analysts predict that the CPI added 0.1% mom after gaining 0.2% mom in November. Experts note that the more neutral the statistics are, the better for the dollar, since inflation surges would now be a high risk (in anticipation of the imminent introduction of a new stimulus package).
In the evening, the US Federal Reserve Beige Book will be published. Usually the market does not react to such publications, but they are important for understanding the general picture of what is happening in the American economy.
---------- Post added 01-14-2021 at 02:01 PM ---------- Previous post was 01-13-2021 at 09:16 PM ----------
January 14, 2021 – Why is the oil market declining?
Yesterday, Brent quotes updated an almost annual maximum at $57.38 per barrel, but today the asset has dropped to $55.77.
The pressure on prices was exerted by data on changes in US oil product inventories. According to a report by the Energy Information Administration (EIA) of the US Department of Energy, crude oil inventories in the country fell by 3.2 million barrels for the week, while analysts predicted a decline of 3.8 million. A day earlier, API released a similar report, according to which oil reserves decreased by 5.8 million
The report from the EIA also showed that gasoline inventories rose by 4.4 million barrels, and distillate stocks by 4.8 million barrels, which was worse than forecasts (3.2 million and 2.8 million barrels, respectively).
Additional pressure on Brent came from the recovery of the US dollar in the Forex market. The USD Index, which measures the US currency against a basket of six major foreign exchange competitors, rose 0.3% on the day. The new US President Joe Biden will speak today. The head of the White House may announce new measures to support the economy, which will put pressure on the dollar and, as a result, lead to an increase in oil prices.