Market review: GBP, oil
There has been a change in the volumes of industrial production in the UK - such statistics will be received today by the market participants. Industrial production is always a big contribution to the country's GDP, and based on the analysis of the statistical series of data, one can make a forecast in regards to the further movement of interest rates. Together with industrial production, market participants will receive data on the trade balance, which will also be published at 08-30 GMT. If there are no negative surprises from this statistical data, then the correctional movement of the British currency upwards is set to continue.
There are news appearing on the horizon that can significantly change the trend in the oil market. Donald Trump has said that Iran secretly trades with North Korea, thus ignoring the imposed sanctions.
And this is not Trump's only statement about Iran. Most analysts agree that the purpose of Trump's latest statements is to blame Iran for all sorts of violations, and thereby to achieve a cancellation of the nuclear deal that Trump considers "terrible".
If things are to go that far, the market will stop receiving oil from Iran to the extent that exists today, which in turn will lead to a sharp rise in oil quotations.
Saudi Arabia made a statement about the forthcoming reduction of oil supplies to its customers. The state corporation Saudi Aramco will soon remove more than 500,000 barrels per day from the market. According to the State Corporation, this reduction should help in restoring a global balance of supply and demand.
It is expected that all OPEC members will further reduce supplies in the future, which will certainly affect oil prices. Russia, in turn, is also likely to limit its deliveries under previously signed agreements.
On Wednesday, the international energy agency will provide supply and demand figures, and OPEC will publish a full report on the oil market. In such a situation, market participants will closely monitor the received statistics on the oil market, and depending on the new data, can enter further positions. We wish you profitable trading!
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