The Biggest Events In Three Decades For Oil On 17th April, 2016

currency trading

CURRENCY TRADING

Hope you are all well,

Most of my articles are always informative and are led by my profession as a financial trader and related to currency trading. But they are also composed of what could affect us as individuals in the short term. This Sunday one of the biggest oil meeting in three decades will be executed and here is what you know about  this particular meeting .In this meeting both OPEC and non OPEC members will be meeting up.One important factor is that Iran will not be attending his meeting as they are totally against this move.

For more information on who OPEC are and what they do  please go to the following link to learn about OPEC.

The purpose of this meeting is to discuss a potential production freeze. There have been talks going on since the February. Even if this deal would come through it would no rebalance supply before 2017. Saudi Arabia and Russia are producing oil at record levels and an output halt would still mean 300 million extra barrels of oil per year for the world excluding the added inventory provided by Iran.

How does oil affect currencies and currency trading:

A) When the oil hit the lows of $26.20 the dollar was at its high’s when it started to bounce we saw dollar starting to loose is value and trading substantially lower.So the dollar will be impacted buy this decision either way.

B) I currently trade oil as a part of my day to day job and I can tell you the price of oil will impact the currency markets and the equities markets as well.

C)The Canadian dollar has a total inverse relationship with oil  due to the market’s overall risk appetite.

There are two Scenario’s :

If there is a production cut how will it affect us as traders:

First of all me and my team of Platinum analysts do not think this can happen but anyway let’s think about the case that they do freeze production without Iran’s Co-operation.

This scenario would be favourable if the price was sitting at 26$ a barrel

*The Price of oil will go higher

*The stocks will rally based on the higher oil prices

*The Us dollar will continue to go lower

*The currency commodities will strengthen

 If there is a no deal or agreement what will happen in the intermediate term.

This scenario seems more favourable as the price of oil is above 40$ a barrel

*Oil Price will collapse

*Commodity Currencies will fall

*Risk Aversion will be back on the dollar and welcome to a full blown reversal

*The stock markets will be sold off and we could see them extend losses over a period of several day.

Please be careful if you are trading on the Sunday open in the event that there are unexpected outcomes.

Have a beautiful weekend.

All of the above either ways will create some beautiful opportunities on the markets. If you have any questions or comments regarding the trading opportunities and currency trading trends that will be created please feel free to message me.

If you like my article and you think it would be useful please like and share it. I am writing an article of positivity and state of mind through my personal life experience in hope to create positivity and motivation for

All my friends and currency trading colleagues

Kind Regards

Nisha Patel.

If you would like to know more about the opportunities that will arise from Oil please feel free to book a consultation.