ZuluTrade Blog

OPEC+ agreed to cut output by 9.5ml barrels per day

Market View | Monday, April 13, 2020 1:14 PM GMT

This corresponds to 10% of global supply as the market expects a 30% drop in total demand worldwide. Negotiations lasted for 4 days and the agreement was close to brake down after Mexico’s departure from the meeting. Nevertheless, the US President, Trump intervened and finally, everything ended smoothly. Nevertheless, Goldman Sachs’s commodity analyst Damien Couravalin said “ based on our updated oil balances, such OPEC+ voluntary cuts would still require an additional 4.1 mb/d cut in May production at the binding storage capacity constraint”. Crude Oil had an explosive rise up to +4% but currently, it stabilized at about +1%. 

Other major news, the G20 countries proposed a six-month freeze on payments which aims to avoid emerging market health crisis and it will be finalized this week by G20’s finance ministers. Boris Johnson, UK PM, left the hospital while UK’s death toll reached 10600 due to COVID-19. The USA has exceeded Spain in deaths reaching 22115 as well as 560000 total cases. The trend in deaths is slowing down in other coronavirus-beaten countries like Italy and Spain. 

Today EU market is closed due to Easter's holiday while US stock futures are moving in negative territory. Worth mentioning, the markets have managed to recover 10 trillion from the 25 trillion total lost value from January’s peak. Reviewing SP500’s technical picture, the index is still testing the 50% Fibonacci retracement level from below. Reviewing NAS100’s daily chart, it may be a couple of days ahead of SP500.

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SP500 daily chart

NAS100 daily chart

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Heading to the forex market, EURUSD is moving above 20SMA for the third day and is still trying to break out 50% Fibonacci level. GBPUSD is attempting to close above major resistance at 1.2486. If so, then the next resistance is at 1.2725. 

EURUSD daily chart

GBPUSD daily chart

Checking the ZuluTrade’s Traders Sentimentthe community is buying USDCHF and USDJPY while is selling GBPUSD, GBPJPY, and USDCAD.

In focus this week (economic calendar):

1st quarter earning will be released from US banks and financial institutions including JPMorgan, Citigroup, Bank of America, BlackRock, and Goldman Sachs.

South Korea has parliamentary elections.

BOC will release the Monetary Policy report.

Anticipate the new US initial Jobless Claims and the retails sales.

China’s GDP announcement.



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