Oil extends gains in APAC

OIL EXTENDS GAINS

The dollar held on to its gains against major peers, consolidating its recent mini-rebound with the euro unable to make inroads despite data showing eurozone economic sentiment at its highest since 2000.

However, with Mr Trump’s tax cuts already built in and the European Central Bank expected to begin winding down its stimulus, analysts say the greenback will likely face further pressure from the single currency down the line.

On oil markets, both main contracts continued their positive start to the year as major producer Iran is hit by unrest and Venezuela’s economy remains depressed.

“Protest in Iran, and decreasing US crude inventories are providing a stable floor on WTI,” said Stephen Innes, head of Asia-Pacific trading at Oanda, said in a note.

He added that while a severe freeze in the northeast of the US would boost demand for heating oil, the temperatures were keeping drivers off the road.

However, he said: “With geopolitical risk extending from Tehran to Venezuela’s economic demise, the market remains on a bullish tack.”

 

The Business Times via 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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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