Double-Headed Tuesday: The Spotlight is on Carney and Draghi

This new June week began upbeat for oil trading: although the Baker Hughes statistics on Friday indicated that the number of drilling rigs increased by another 11 to 758, both grades of crude oil took off from last week’s lows. At the time of this writing, Brent crude is trading at $45.80, and North America’s WTI is a little above $43/barrel.
US oil policy is crucial here  it is neutralizing the OPEC+ agreement. The majority of investors are now waiting for the preliminary statistics from the API (American Petroleum Institute) on Tuesday. Whether production in Libya and Nigeria will rise is also an open question.
On Tuesday Brent crude will most likely find equilibrium at $45.25-$45.75 with support at $45 and resistance at $42.50-$43/barrel.

Asia-Pacific markets closed in the black. The majority of indexes rose 0.65-1.25%, except Japan’s Nikkei 225, which consolidated up only 0.1%. The rise in oil prices improved investors’ mood a little  they were actively buying company stocks, including those of energy companies. After trying to rise, the USD/JPY pair fell almost to its opening price and, at the time of this writing, is trading at 111.41, trending down. Tuesday's trading just might continue the downward trend; there is strong resistance at 111.2, and the support is at 111.65. It appears that investors will also be paying attention to US economic indicators in the second half of the day, along with the initial API numbers.

European indexes and stocks showed significant growth on Monday, taking over from their Asian colleagues amid underwhelming US numbers: the majority of indexes consolidated up 0.5-0.93% on Monday. Many investors will be tracking speeches by central bank heads – Mr. Draghi and Mr. Carney – who will impart their vision of monetary policy in the EU and Great Britain. It appears that the ECB intends to start winding down its quantitative easing policy, which will raise uncertainty over the euro. The EUR/USD and GBP/USD pairs are, however, still displaying convincing growth. The EUR/USD pair broke through the 1.1212 mark in Monday's trading, attempting to settle above the psychologically important 1.12 mark. The GBP/USD pair is trading a little above 1.27. In both cases, we’d advise watching for the statements of the central bank heads, since they may either change the situation or confirm the current uptrend.

Yuri Prokudin, Olymp Trade analyst

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