The US oil offensive

Today’s news headlines:

  • ‘International oil prices rebound following Trump warning’ – Yesterday, President Trump issued a statement that he had ordered US warships to destroy Iranian vessels that posed a threat, aiding a rebound in oil prices. Brent Crude traded back above $20 a barrel after the benchmark had fallen to the lowest level since 1999 on fears of a shortage of demand for the commodity. Oil production levels have remained high despite the effect of coronavirus on demand, resulting in a glut of supply and fears of a shortage of storage. (Financial Times)

  • ‘ECB Acts to Shield Weakest Euro Economies From Rating Cuts’ – The European Central Bank will potentially accept junk-rated debt as collateral for loans to banks in an effort to protect some of the Euro area’s most vulnerable economies. Two-days before a possible credit rating downgrade of Italy by S&P, the central bank announced that they would accept corporate and government bonds as long as they held the lowest investment grade – BBB, on April 7th. The move should help businesses access the credit they need to survive an uncertain period caused by the virus. (Bloomberg)

Today's events, rates, and data 

  • Overnight, Brent Crude rose another 10% meaning an overall gain of roughly 35% in the past 24 hours, the US dollar fell marginally and equity futures across the US and EU were marginally higher.

Today's events

German Gfk Consumer Climate              -23.4 vs 2.3 last month
French Flash Services PMI                      10.4 vs 27.4 last month
French Flash Manufacturing PMI             31.5 vs 43.2 last month
German Flash Services PMI                     8.30am
German Flash Manufacturing PMI           8.30am
UK Flash Services PMI                              9.30am
UK Flash Manufacturing PMI                    9.30am
US Unemployment Claims                        1.30pm
US Flash Manufacturing PMI                    2.45pm

Interbank rates:

GBPUSD: 1.2330

GBPEUR: 1.1412

EURUSD: 1.0805