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Devata Tseng

Oil Slumped Post OPEC Extension Announcement

On Thursday, OPEC announced that the existing output cut agreement will be extended for an additional 9 months, which was in line with market expectations. However, the scale of output cut remains the same at 1.8 million barrels a day. Besides, no new OPEC member states will join the agreement extension. In addition, the market witnessed some profit-taking pressure which weighed on oil prices resulting in a drop of 5%. On early Friday morning, WTI spot and Brent crude spot hit a 2-week low of ...

Devata Tseng

Could USD Rebound After FOMC Less Hawkish Stance?

The FOMC released its May meeting minutes last evening stating that the overall economic assessment was little changed. The Fed sees to raise rates once again is ‘soon be appropriate’. Markets assume that it signals a rate hike in June. The minutes also signals further tightening is expected if the incoming economic data shows improved economy. The Fed sees the weak economic performance in Q1 as transitory, caused by soft consumer spending and inventory investment. Fed members considered it ...

Devata Tseng

USD Bounces From 6-1/2-Month Low, Eyes on FOMC Minutes

The Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion in government spending over the next decade, mainly reducing the funding for healthcare and social benefits (such as Medicaid, SNAP, pensions for government staff) and Environmental Protection Agency funds. The cuts are to be used for funding to boost economic growth and to reduce the US deficit. Nevertheless, it will result in numerous needy American citizens ...

Devata Tseng

How will FOMC Minutes Affect USD Post Slump on Trump’s Scandal ?

Recently Trump’s leak scandal has been leading the USD move instead of economic performance. Last week USD had its biggest weekly fall since the US presidential election because of the scandal. The markets are concerned it will result in Trump’s plans not being able to be executed and worsen the economic slowdown. In addition, North Korea launched its second ballistic missile towards Japan on Sunday further lifting regional tension. The dollar index hit a new post presidential low of 96.68 on ...

Devata Tseng

Conservative’s Approval Rating Drops Ahead of General Election

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211 a level not seen since November 9th of last year. On Monday morning, during the European session, the dollar index experienced a moderate rebound, touching 97.29, as the market is aware of a strong support level at 97.00. GBP/USD hit a high of 1.3047 on May 18, last seen September 29, breaking a significant resistance at 1.3000. On Monday morning, during the early European ...

Devata Tseng

Markets Priced In OPEC Output Cut Extension

There are two upcoming events that are expected to impact the price of Oil; firstly, the Iran presidential election will be held today (May 19th) and secondly, the OPEC meeting will be held on May 25 in Vienna. The result of the Iran presidential election and the associated geo-political risks will likely affect its oil production. Overall, the execution of OPEC’s output cut agreement has been sound. However, some OPEC member states exempted from the agreement, such as Iran, Libya, and Nigeria, ...

Devata Tseng

Trump Faces Biggest Political Crisis Since Taking Office

The Department of Justice has appointed former FBI head Robert Mueller to investigate whether Russia intervened during the 2016 presidential election. Recent reports from the US are indicating that the probability that Trump’s presidency will end this year is around 29% following the Russia leak scandal. Trump is now facing his biggest political crisis since taking office. Opinion polls, conducted by Politico and Morning Consult, that were released on Wednesday showed that Trump’s approval ...

Devata Tseng

USD Hit Post Election Low on Trump’s Russia Leak Scandal

It was widely reported that President Trump shared highly sensitive information with the Russia Ambassador at a recent meeting at the White House putting further pressure on USD. During today’s early European session the dollar index hit the lowest level of 97.74 last seen November 09 2016, EUR/USD traded as high as 1.1121 a level last seen November 09 2016. In line with the continued weakness in USD, spot gold had a fifth day of gains trading at a 2-week high of 1244.91. To date the dollar ...

Devata Tseng

Push & Pull: USD Pressure & EUR Strength

The Asian session saw equities climb to a fresh-two year high early on Tuesday on the back of an overnight rise in Wall Street fueled by reports that President Trump had disclosed classified information with the Russian Foreign Minister without necessary authorization from the source. This re-fueled the continued underlying uncertainties and reinforced doubts surrounding the Administration’s economic agenda. Oil continued extending extended gains following a pledge from the major producers ...