OctaFX | OctaFX Forex Broker
Open trading account
Back

Keep an eye on the oil market after Chavez's death

Following the breaking news of Venezuela's president Hugo Chavez, which has no direct impact on the currency market, traders should probably keep an eye on the Oil market. Venezuelan Vice President Mr. Maduro is expected to win the elections and become his successor.

From Reuters: ”We have no doubt that commander Chavez was attacked with this illness,” Maduro said, repeating a charge first made by Chavez himself that the cancer was an attack by “imperialist” foes in the United States in league with domestic enemies.

"This report should be bullish for oil" says Eamonn Sheridan, editor at Forexlive. At the time of writing, US Oil futures are quoted at 90.83 after sharp fall off a double top from early February in the 98.00 vicinity.

Venezuela enjoys the world's largest oil reserves and the oil-related bonds being traded are of enormous size, suggesting that the oil community may go through a phase of hyper-sensitivity on any indications of political unrest in the country.

As Valeria Bednarik, chief analyst at FXstreet.com notes: "Although the news has little to do right now with the forex market, Venezuela is an oil producer, and therefore, we may see some wild action in oil and that could affect forex market." She tips to keep an eye on this and its correlation with oil, "particularly at the European and the US opening" she said.

Forex Flash: BoJ acceleration of long-dated JGB main policy - Nomura

Following speeches from BOJ deputy governor candidates, Mr. Iwata and Mr. Nakaso, during their confirmation hearing in the parliament yesterday, Nomura analyst Yujiro Goto summarizes Mr. Iwata main points of disccusion, noting that "he said the BOJ should buy JGBs with a maturity of more than five years and should increase net bond purchases, also saying the Fed buys bonds worth 1.5 times more than banknotes, suggesting the BOJ's banknote rule does not make sense."
Read more Previous

Forex: USD/SGD off fresh 2013 highs below 1.25

USD/SGD is last at 1.2455, off Monday's fresh 2013 highs at 1.2486, and yesterday's highs at 1.2477, up 2% since start of the new year. “Regionwide risk aversion, triggered by China's latest property-market curbs, had dragged the Singaporean currency to a six-month low Monday,” said Chun Han Wong at DowJones. The pair is higher by +0.37% for the week so far.
Read more Next
Start livechat