Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that the oil prices have rebounded above $50 after falling around 60% in the year, further views that it might be too early to conclude that the lows are now in place.
Key Quotes
“One of the main developments so far this week in financial markets is the tentative bounce in the price of crude oil which has risen back above USD50/barrel. Oil prices have staged their largest rebound over the last couple of days since the sharp decline began in the middle of last year.”
“While it may still be too early to confidently conclude that the lows are now in place, the recent price action will support expectations that oil is beginning to bottom after falling by around 60%.”
“As a result currencies of net crude oil exporters are trading on a firmer footing in the near-term such as the Norwegian krone.”
“The rebound in the price of crude oil is coinciding with building evidence of the upcoming hit to supply and tentative signals of a pick-up in business confidence.”
“The release yesterday of PMI surveys from Europe particularly from Central Europe rebounded by more than expected in January.”
“Citi’s economic surprise index has returned to positive territory for the euro-zone as the US economic surprise index has fallen into negative territory. The recent loss of growth momentum in the US may at least temporarily dampen upward momentum for the US dollar.”
Key Quotes
“One of the main developments so far this week in financial markets is the tentative bounce in the price of crude oil which has risen back above USD50/barrel. Oil prices have staged their largest rebound over the last couple of days since the sharp decline began in the middle of last year.”
“While it may still be too early to confidently conclude that the lows are now in place, the recent price action will support expectations that oil is beginning to bottom after falling by around 60%.”
“As a result currencies of net crude oil exporters are trading on a firmer footing in the near-term such as the Norwegian krone.”
“The rebound in the price of crude oil is coinciding with building evidence of the upcoming hit to supply and tentative signals of a pick-up in business confidence.”
“The release yesterday of PMI surveys from Europe particularly from Central Europe rebounded by more than expected in January.”
“Citi’s economic surprise index has returned to positive territory for the euro-zone as the US economic surprise index has fallen into negative territory. The recent loss of growth momentum in the US may at least temporarily dampen upward momentum for the US dollar.”
