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July 20, 2018

IronFX, Saudis oil exports will remain at current levels & Trump comments hurt the greenback

In the European session we get Germany’s Producer Price Index for June.

This article is originally referred from IronFX News.

Trump comments hurt the greenback

Yesterday in an interview with CNBC President Donald Trump said a strong USD puts the United States in a difficult situation.

The comment could be connected to fears of future declined exports.

Trump also criticized the Fed for raising interest rates but also added that he does not interfere with the Fed’s work.

Though, he made it clear through his comments that he is not thrilled with fact that the Fed brings the economy back down with rate hikes.

The greenback immediately reacted and dropped against its major counterparts the EUR and JPY.

Moreover, the White House confirmed Thursday that President Trump has invited Russian President Putin to Washington this autumn.

Donald Trump even though under huge criticism on the matter and specifically from the US , stated earlier this week that the first meeting was a success and similar feedback was given from President Putin.

The new invitation could indicate further developments on the relationships of the two countries and even business partnership.

USDJPY dropped on the release of the comments and remained between our 112.75 (R1) Resistance level and the 112.05 (S1) Support barrier.

From a technical perspective, it must be noted that the RSI indicator on the 4 hour chart is very near the reading of 50 which could imply uncertainty among traders for the day and that a sideways movement between the pre mentioned levels could continue.

Should the bulls take over the market we could see the pair breaking the 112.75 (R1) resistance line continuing higher aiming for the 113.65 (R2) resistance level.

Should the bears dominate the pairs direction we could see it breaking the 112.05 (S1) support line and aim for the 111.30 (S2) support barrier.

Saudis oil exports will remain at current levels

On Thursday, Saudi Arabia’s OPEC representative, stated the kingdom’s oil exports will be little changed this month.

The Saudi governor stated that they were not trying to push oil into the markets beyond the customers’ needs.

Today, ahead of the difficult OPEC meeting, lies the decision to increase supply, and if so by how much?

The Oil market has suffered supply losses from Venezuela and Libya and adjustments to volume could be made.

However, coming from a different perspective OPEC’s target to stabilize prices is not only to make profits but also to attract investment in the industry, which is at very low levels currently.

Oil prices moved higher on the OPEC representative comments and strong volatility is expected during the meeting today.

Crude Oil’s price strengthened on the pre mentioned news with the commodity’s September Future moving and stabilizing just above our 68.10 (S1) support level.

However, the commodity may prove to be very volatile during the OPEC meeting and strong price movement could be on the go.

Should Oil find extensive buying orders along its path, we could see it rising and breaking the 70.19 (R1) resistance line and move higher towards the 71.65 (R2) resistance barrier.

Should it come under selling interest by the market, we could see the pair breaking the 68.10 (S1) support barrier and move even lower towards the 66.58 (S2) Support level.

In today’s other economic highlights:

In the European session we get Germany’s Producer Price Index for June.

In the American session we get the Canadian Inflation data for June and the Retail Sales for May.

At this point we remind you again of the OPEC meeting today with the start time remaining undisclosed.

Original Source: IronFX News

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