Oil prices and the Fed's monetary policy remained in focus this week. This week's U.S. economic was mixed again. The labour market continued to strengthen, while the U.S. manufacturing sector remained weak. Markit Economics's preliminary manufacturing purchasing managers' index (PMI) fell in April to the lowest level since September 2009.
It is unlikely that the Fed will raise its interest rate next week. Market participants will analyse the Fed's statement, looking for hints when the Fed will continue to hike its interest rate. The "dovish" statement will likely weigh on the U.S. dollar.
Oil prices rose this week, supported by the strike in Kuwait's oil sector and hopes for a freeze of the oil output. The meeting between OPEC and non-OPEC countries in Doha on April 17 ended without any agreement on the freeze of the oil production. But oil producers plan to meet in June. OPEC Secretary-General Abdallah Salem el-Badri said on Thursday that OPEC and non-OPEC countries could discuss the freeze of the oil output in June.
Oil prices are likely to remain volatile in the coming days and weeks.
The European Central Bank's (ECB) kept its monetary policy unchanged on Thursday. The ECB President Mario Draghi said nothing new. He pointed out that the central bank did not discuss helicopter money and that interest rates would remain at low levels for a longer period.
It is likely that the currency pair EURUSD will rise toward the high of April 21 at $1.1397 or toward the high of April 12 at $1.1464, if there are be negative news from the U.S. and there are no negative economic data from the Eurozone.
If the U.S. economic data is better than expected and in case of the negative economic data from the Eurozone, the currency pair EURUSD may test the support level at $1.1200 or $1.1100.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.