After failing to rise beyond $74 last week, oil prices fell to about $71 on Monday morning. Saudi Arabian news stories this morning are driving down prices. The state-owned oil giant Aramco is offering discounts on oil delivery to a number of regions, with the largest savings going to Asia. The market is already factoring in these price reductions, but over time, lower supply may increase demand, which would be good for oil prices. For instance, India’s economy is surpassing other countries’, and the country is already reporting another spike in oil demand.
CRYPTO BITCOIN ETF
A Bloomberg article indicates that the US financial regulator is expected to approve Bitcoin Spot ETFs as soon as this week. With the deadline approaching on January 10, Bitcoin holders are waiting for the Securities and Exchange Commission (SEC) to approve the securities product.
According to Bloomberg, insiders predict the regulator will make its announcement regarding many Spot Bitcoin ETF applications at once on January 10th. A dozen or so applicants have raised seed money and promoted their Spot BTC ETF product as they wait for the SEC’s verdict. From a technical standpoint, Bitcoin has surpassed the $45,000 during the European session this morning.
Following a wild ride on Friday around NFP release, likely hurting intraday and short-term trades, the US dollar (USD) trades mostly stable on Monday, Following a positive headline number in the US Jobs report, the US Dollar Index (DXY) surged much higher. However, this gain was completely reversed and the index fell due to extremely low Employment numbers in the Institute for Supply Management (ISM) Services PMI survey. In addition to the fluctuations brought on by economic data releases, traders must reassess the US Dollar in light of growing geopolitical unrest and growing anticipations of Fed interest rate decreases. Only the Consumer Credit data for November is due on Monday, which means it should a relatively quiet day in the markets. Since multiple banks have indicated they are witnessing an increase in payment arrears, the attention on credit scores, loans, and defaults is probably going to intensify in the upcoming months. The US inflation figures on Thursday will be the big event of the week.
The price of gold (XAU/USD) continues its intraday decline during the first part of Monday’s European session, returning to levels near a two-week low that was reached in the wake of Friday’s positive US monthly employment report. The widely recognised Nonfarm Payrolls (NFP) data demonstrated the continued strength of the US labour market and compelled investors to continue reducing their expectations for the Federal Reserve (Fed) to loosen policy in a more aggressive manner. Consequently, high US Treasury bond rates continue to be supportive of the US Dollar and divert capital from the non-yielding yellow metal.