A Week in the Market (02/08 - 02/14): Attention to Oil and Dollar

A Week in the Market (02/08 - 02/14): Attention to Oil and Dollar

Views: 2,118 views
Reading time: 3 min

The second week of February will focus on the same assets as the first one: oil and the USD. Both look overbought, but while investors are benevolent, they might go on growing, even from such high prices.

Central banks: session must go on

On the new week of February, the Central banks of Peru, Sweden, Serbia, the Philippines, and Mexico are having their sessions. In the latter case, the interest rate might be decreased from the current level of 4.25% - to 4.00% as a part of the softening of the credit and monetary policy. Capital markets might interpret this as a sign of tension in certain world economies.

Brent: testing 60 USD per barrel

The oil market has taken a good start upwards, believing in the absolute efficacy of the vaccination, and the world economies soon coming back to normal. This week, OPEC is completing its monthly report on the oil market that is expected to contain important information from this year. In the sector of energy carriers, it might provoke more buying.

Asia: the Lunar New Year and holidays

China and several other Asian countries are going on holiday on the occasion of the Lunar New Year celebrated on February 12th. The market is somewhat worried that the coronavirus might start spreading faster during the holidays but anyway, the fact will be seen a bit later. There are real risks for risky assets here but investors will react to them later.

The USA: the market still likes the USD

The flow of the most important statistics from the USA is over, and attention switches to the information on inflation and corresponding forecasts. The stabler the statistics, the better for the USD. Also, take a look at the speech of the head of the Fed Jerome Powell at the webinar of the New York Economic Club.

EUR: weakness become common

These weeks, the EUR has become noticeably weak, which is becoming a normal situation for the currency market. The publication of the economic forecast by the European Commission this week might give additional reasons for declining, as well as the Sentix CCI for February.

We'll cover any topical theme on trading and investing if you find it useful.


Previous article

IT Giants Grew by 50% during Pandemics

In 2020, the overall yearly income of major IT companies increased by 24% to 1.1 trillion USD, while their market capitalization grew by 50%, reaching 8 trillion USD. As you might have guessed, we’re talking about Apple, Microsoft, Amazon, Alphabet, and Facebook.

Next article

Signify Health, Inc. IPO: Healthcare Services at Home

Signify Health, Inc. Is a company, which implements the most efficient analytics and technologies for helping patients: it determines whether it is necessary for a patient to be admitted to a hospital and looks for the most efficient and cheapest doctor for them. The company’s potential market volume will exceed $2 trillion by 2025.