- April 3, 2023
- Posted by: Noureldeen Al Hammoury
Over the past few days and even though many OPEC+ delegates stated that there is no plan to change the current production quota, OPEC+ surprised the market with a production cut decision, which took the market by storm.
|United Arab Emirates
Such a decision is eye-opening days ago they were saying that demand is strong and the growth is here to stay. Today, the action says the opposite. It shows that demand has decreased over the past few months, and the risk of a global recession is another factor, but no one wants to admit it publicly for political reasons.
Japan has begun purchasing Russian crude oil above the $60-a-barrel cap, breaking with Western allies thanks to an exception authorized by the United States. If the US gave Japan an exemption to buy Russian oil above the $60 cap, then the whole price cap agreement is a joke. I wonder how long it will take until another country asks for an exemption.
April 3rd is Here What’s Next?
Today is April 3rd, this is the date that we have been talking about since March 3rd. This is the date when new trends should develop in global markets, including stocks, currencies, bonds, and commodities.
It started with the shocking decision by OPEC+, the next few hours will bring us more clarity about the next move. in Asia, the US Dollar is still higher, however, keep an eye on the daily close as above 102.90 would lead to an extended upside retracement, possibly toward 103. 60
NZDUSD: trading near breakeven stop order. There is no need to change the stop, if it triggers, we will be able to buy cheaper.
Crude Oil: Congrats on this quick trade right after the opening, went short at 80.85 and closed at $79.0. netting 185 pips.
The next few hours/days are considered a positioning period, we will execute medium-term trades on currencies, indices, and stocks. Make sure that you have enough margin and/or cash in your accounts.