Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts have extended gains into the Asian trade session and are on track for two straight daily gains. Traders are expecting new fiscal policy measures to offset the economic damage from the coronavirus (COVID-19).
Oil traders are also hoping for deeper production cuts from OPEC and non-member allies led by Russia, later this week.
As of 1:50 am GMT, the international crude oil futures contract, Brent, was up $1.48 per barrel to trade at $53.18 per barrel.
The U.S. West Texas Intermediate (WTI) crude oil futures contract added $1.33 or 2.8 percent to fetch $48.07 a barrel.
Both of these headline futures contracts have mounted a recovery over the last two days after shedding twenty percent from their 2020 high price point set in January.
Traders were, and still are, worried about the economic impact from the COVID-19 virus and its demand on oil as economic growth slows.
Since Friday, the WTI contract is up about eight percent and the Brent futures contract is up 7.5 percent.
Traders React and Digest a Surprise Rate Cut from the RBA
The Reserve Bank of Australia shocked market participants by cutting their overnight cash rate (OCR) by 25 basis points to a new record low of 0.5 percent. They were expected to stand pat with both monetary policy and rates this month.
RBA Governor Phillip low said that “the board took this decision to support the economy as it responds to the global coronavirus outbreak.”
This is the Reserve Bank of Australia’s fourth rate cut in nine months.
At 3 pm HK time the Malaysian central bank will announce their monetary policy and rate
Crude Oil Traders wait on the G-7 Conference Call later Today
At 7 am EST, there is a telephone conference call led by U.S. Treasury Secretary Steven Mnuchin and U.S. Federal Reserve Chairman Jerome Powell. They will speak with members of the Group of Seven (G-7) industrialized nations.
They are expected to discuss the economic impact from the coronavirus and market participants are expecting to hear about possible additional fiscal or monetary support.
