Oil Prices Remain Constant After Friday’s US Job Report
08/07/2019

The NFP report was above expectation after its release on Friday. As a result, oil prices remain constant in the Asian Market on Monday.

This morning International Brent Oil Futures were around $64.26 while the U.S. Crude Oil WTI Futures gained around 0.2% to $57.6.

Last week, data showed a decline in US crude inventories; thus raising concerns in regards to demand as the oil markets posted weekly losses.

The deal between OPEC and its allies is a major catalyst that will prevent oil prices from falling too hard along with OPEC’s promise to tighten its supply until March 2020.

Last week prices rose after the US and China agreed to resume trade talks.

Moreover, last week that British Royal Marines has been reported to have seized an Iranian oil tanker because it was heading to Syria and breached EU sanctions.

Marginal rise for Bitcoin

A marginal rise in the price of bitcoin was seen today in the Asian market. Moreover, with no major drivers today, the US plans to stop Iran access to cryptocurrencies gained some focus.

At 04:58 GMT, bitcoin inched up by 1.1% to $11,412.6 after last Thursday’s free fall which took the coin as low as $9,728.5.

Similarly, Ethereum rose by 4.1% to $304.4 while XRP and Litecoin dropped by 0.1% and 0.4% to 0.39639 and 118.341 respectively.

In addition to the above, it has been reported that Iran is trying to get access to cryptocurrencies and bitcoin mining.

Consequently, the US Congress is trying to halt Iran from having access to cryptocurrencies because they believe this can help them to evade sanctions and do money launderings.

Asian stocks slipped on Monday

Asian stocks fell during morning trades as the Federal Reserve (Fed) may not cut interest rates this month after the Bureau of Labor Statistics revealed a relatively strong new added employment data.

The Fed policymakers said they were ready to cut interest rates in order to support economic growth. However, the NFP data released on Friday prompted questions about whether other rates cut were needed.

The Shanghai Composite Index fell by 2.3% to 2,940.75 while Tokyo’s Nikkei 225 lost 0.9% to 21,548.36.

Likewise, Hong Kong’s Hang Seng dropped by 1.7% and South Korea’s Kospi declined by 2% to 2,068.24.

Australia’s S&P-ASX 200 also dropped by 1% to 6,679.70.

Meanwhile, the USDJPY pair dropped by 0.11% to 108.40 yen. On the other hand, the EURUSD pair remained unchanged at $1.1225.

Financial Events to watch for today

  • 06:00 GMT – German Industrial Production (MoM) [GER]
  • 06:00 GMT – German Trade Balance [GER]