WTI prices marked some substantial gains yesterday as a consequence of the reported explosions on two tankers near the straits of Hormuz. The US accused Iran of attacking the two vessels, while at the same time Iran denies the accusations. Whatever the case, the explosions add further tension to the region, which could threaten the normal supply chain for oil, hence increase the commodity’s prices. Also, It should be noted that yesterday the OPEC report was released and the organization states that ongoing global tensions have resulted in weaker growth in global oil demand.

USD stabilizes ahead of Fed meeting‍

The USD seems to stabilize ahead of the Feds’ meeting next week. Investors are expected to turn their attention towards the Fed’s meeting next week, for any hints about a possible rate cut. Analysts tend to point out that the market may be expecting dovish comments ahead of the meeting from Fed officials, which could put pressure on the USD.

Other economic highlights, today and early tomorrow

Today during the European session, we get from France the final HICP rate for May, from China the industrial production growth rate for May and Sweden’s CPI rate also for May. In the American session we get from the US the retail sales growth rates for May, the industrial production growth rate for May, the preliminary university of Michigan consumer sentiment for June and the Baker Hughes oilrig count. We do not expect any significant financial releases for Monday’s Asian session. As for speakers, please note that BoE Governor Carney and ECB’s Lautenschlaeger speak.

WTI H4

EUR/USD H4

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