OIL Higher Dollar Lower

Analysts said a host of factors was pushing the market’s newfound optimism in oil.

“Inventories are showing massive drawdowns, Saudi Arabia seems intent on playing its role as the world´s swing producer ahead of the Aramco IPO, impending sanctions on Venezuela by the US will almost certainly be oil price supportive with a weaker US dollar and conflict within Washington DC all lending a hand,” said Jeffrey Halley, senior market analyst at OANDA.

“There also appears to be less urgency by shale producers to hedge forward production for now which has snuffed out previous rallies.”

– Japanese economy ‘stronger’ –

The yen’s rise came as the dollar continued to struggle, dragged down by increasing uncertainty in the US capital after another failed attempt at healthcare reform, while the currency also took a hit from US GDP data which cast further doubt on any early interest rate increase from the Federal Reserve.

Stephen Innes, who heads Asia-Pacific trading at forex firm OANDA, played down hopes of a US dollar rebound.

“There remains real appetite to sell the USD … as it’s becoming evident to all the greenback has problems, and the can of worms is barely open.”

Daily Mail vis AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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