Monday Morning Update: #OIL +293bp

Posted: 2017-05-15 12:00:00 | Author: Predator Research Predator Research

European shares steadied on Monday, helped by a bounce in oil prices and fresh dealmaking activity, while a global hacking attack boosted shares of software security firms.

Some investors said after three straight week of gains for European equities the mood was dampened by Friday's unprecedented "ransomware" attack that hit 200,000 victims in at least 150 countries. However, demand for the stock of cyber security firms has been strong following the attack.

Saudi Arabia and Russia, the world's two top oil producers, agreed on Monday on the need to extend oil output cuts for a further nine months until March 2018 to rein in a global crude glut, pushing up prices for Nymex Light Sweet Crude up 293bp to $49.24/bbl.

The ministers pledged "to do whatever it takes" to reduce global inventories to their five-year average and expressed optimism they will secure support from producers beyond those in the current deal, the statement said.

Todays Prey

Depositors have withdrawn nearly 94 percent of funds from Home Capital's high-interest savings accounts since March 27, when the company terminated the employment of former Chief Executive Martin Reid. The withdrawals accelerated after April 19, when Canada's biggest securities regulator, the Ontario Securities Commission, accused Home Capital of making misleading statements to investors about its mortgage underwriting business.

Order Flow

USD weakness after Friday’s inflation miss saw USDJPY eventually trade 113.11 overnight. Flows remain mixed with discretionary volumes still relatively light. Local corporate flows have also been mixed with both importers and exporters active, giving little directional bias.

Dealers expect a few offers in EURUSD at 1.0980 and again at 1.1000, but stops above both also likely on a break. Support 1.0915 and 1.0885 ahead of 1.0839/50.

Some dealers suggest 1.3600 the key level to the downside for USDCAD with resistance now at 1.3770, the first meaningful resistance ahead of 1.3800. A break below 1.3600 could spark more capitulation...

© Vertex Trading Systems LLC | Powered by Order Flow Trading