Crude oil price inches downwards ahead of OPEC+ meeting
Crude oil price declined slightly during the Asian session as traders reacted to news that OPEC and its allies were considering easing oil supply cuts. According to Wall Street Journal sources, the countries are planning to relax the curbs by 2 million barrels a day to 7.7 million. The report said that Saudi was worried continued support will be dangerous as non-OPEC members attempt to gain market share. The report came two days after IEA said that the worst effects of coronavirus on oil demand had passed but will continue to echo as the market recovers. The group will hold a virtual meeting on Wednesday this week.
The euro rose against most currencies as traders looked forward to the upcoming EU and ECB meeting. The meeting of EU leaders will take place in Brussels on Friday to deliberate on the 750 billion euro recovery fund. In a statement, Angela Merkel warned that Europe could not afford time-wasting, arguing about the plan. Still, some governments are calling for cuts to the recovery package. Meanwhile, the ECB will deliver its interest rate decision on Thursday. Most analysts see the bank leaving interest rates unchanged at 0.25%. Later today, we will get the wholesale price index from Germany.
The US dollar eased slightly against its peer currencies as the number of coronavirus cases in the United States continued to rise. On Saturday and Sunday, the country reported more than 61k and 58k new infections respectively. A major concern is Florida, which reported a record 15,299 new cases on Sunday. This is happening as the Trump administration continues to push states in the country to reopen schools. He has also asked states not to resume lockdowns. With the election being a few months away, the president is worried about losing to Joe Biden.
The EUR/USD pair rose to an intraday high of 1.1328 ahead of key meetings. This price is the highest it has been since Thursday last week. The price is also above the 50-day and 100-day exponential moving averages. It is also above the 23.6% Fibonacci retracement and the ascending white trend line. The pair is likely to continue rising as bulls target the next resistance level at 1.1350.
The GBP/USD pair rose to an intraday high of 1.2654, which is the highest it has been since Wednesday last week. On the four-hour chart, the price is above the short and medium-term moving averages. It is also above the dots of the Fibonacci retracement level. The moving average of oscillator has also crossed the important neutral level. Therefore, the pair is likely to continue rising as bulls attempt to move above the resistance at 1.2675.
The USD/JPY declined slightly as traders reacted to the rising number of coronavirus cases in the United States. The pair is trading at 106.82, which is slightly below Friday’s close of 106.95. On the four-hour chart, the price is below the 50-day and 100-day exponential moving averages while the RSI has been dropping. The signal and bars of the MACD have also moved below the neutral level. Therefore, the pair is likely to continue falling as bears target the 106.50 support.