One of the main talking points over the weekend was the production cuts from OPEC. It’s looking possible that over 1 million barrels per day could be cut from supply as fear enters the market that demand could be drying up.
We have already seen on Monday that price is up nearly 3% towards $78 and speculation is that it will continue towards 80.
DXY continues the move lower today as more negativity creeps in. There seems to be a strong risk on appetite in markets and with implied interest rates moving lower, strength in USD is fading as a break of 103 looks likely.
Other FX crosses seem to be taking advantage of this with USDJPY moving towards 148, USDCAD holding on the trend line and USDNOK moving lower from the higher oil prices (NOK benefiting)
Gold continues to move sideways unable to take advantage of a weaker dollar. Jonathan still holds his thoughts of selling gold at 2000 and narrowly missed a great shirt at price rallied above 1990.
Indices within the UK remain subdued as weaker oil prices impact the FTSE100 constituents. US indices continue moving higher with the NASDAQ pushing higher towards 16,000.
With the macro picture still not looking all positive but a soft landing looking more likely, how will you be positioned going into the remainder of 2023?