Forex News from NewForex: Oil prices decline amid growing data in the US
In the trading on Monday, July 25, oil keeps losing ground. Concerns over oil glut in the global market pull down black gold. Crude oil with the delivery in September dropped by 0.59% to $43.93 a barrel. On Friday oil slumped to $43.74, a low since May 10.
The number of drilling rigs in the US descended by 14 last week to 371 which is the fourth weekly decrease in a row. Gasoline inventories rose by 0.9 mln., while market participants expected a tumble by 0.8 mln. barrels. In total US oil inventories shed 2.3 mln. barrels last week. However, in spite of this 519.5 mln. barrels perform a historic high for this season.
In the Mercantile Exchange in London Brent with the delivery in September slid 0.61% to $45.41 a barrel. On Friday the raw material edged down to $45.17 hitting a 2-week low. Last week Brent slipped to $2.23 or 4.03%. High probability of export increase from Libya and Iraq triggers concerns as it might lead to the market glut and decrease in demand for oil among refiners.
NewForex Analyst
Sara Rosenstein
Forex News from NewForex: Euro gains against the main currencies
European markets advance after the release of upbeat data from Germany. Although the Business Climate of Germany slumped from 108.7 to 108.3 this month, it stands above the forecasts of economists. The pan-European index STOXX 600 surged 0.53%. The UK’s FTSE climbed 0.02%, the German DAX added 0.96%, the French CAC 40 rose 0.59%.
Global shares increase after the announcement of G20 Finance Chiefs about the readiness to implement necessary measures to boost the global economic growth.
In spite of the rise of the euro against the buck by 0.12%, the single currency remains at a 1-month low against the greenback. The immediate level of support is seen at 1.0908 (a low of June 24), the level of resistance stands at 1.1042 (a high of July 22). The pair euro/pound picked up 0.23% to 0.8376. The single currency jumped 0.24% against the yen to 116.58, against the Swiss franc it gained 0.14%.
NewForex Analyst
Sara Rosenstein