Morning Insights 1st June

Simon Alagbe

Analyst


Instrument: OILs

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 70.92 with take profit at 71.22.

Bearish Preference: Sell position is envisaged if price trades below 69.87  with take profit at 69.59.

Fundamentals:

OPEC-JMMC Meetings All-day    

Comment: Oil prices rose on Tuesday, with Brent topping $70 and trading at its highest since March, as optimism grew over the fuel demand outlook during the summer driving season of the United States, the world's top oil consumer. Prices were also boosted after data from China showed that factory activity expanded at its fastest this year in May.



Instrument: GBPUSD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above  1.42442 with  take profit at 1.42642.

Bearish Preference: Sell position is envisaged if price trades below 1.41602 with take profit at 1.41412.

Fundamentals:

ISM Manufacturing PMI (USD) 3:00 PM

BOE Gov Bailey Speaks (GBP) 4:00PM

Comment: The dollar weakened in early European trade Tuesday, slipping to multi-month lows against many of its peers, as traders look to the release of closely watched nonfarm payrolls data later in the week for clues surrounding the Federal Reserve’s policy thinking. Elsewhere, GBP gained some more strength, breaching a February peak to reach the strongest since April 2018, continuing to benefit from the U.K.’s advanced pace of vaccination which suggests a quick move towards normalisation, and potentially policy tightening.

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