Will trade tension extend?

OPEC and non OPEC countries meeting in Vienna, Austria had ended with the deal to increase oil supplies but it was not clear volume as production of some countries reduces. OPEC also will extend to control the oil supply 1.2 million barrels until ending of 2018 for the stabilization of oil price. As the result, the real increasing oil supply may only 600,000 barrel per day which may not pull oil price down. Hence, Brent rose above 75.5 dollar on last Friday and I think it may move sideways around 73-76 dollar on Monday.
According to the U.S. tariff, world shares fell lower last week and Dow Jones also fell 8 days but Dow Jones closed higher 119 points on last Friday. In my view, the most Asian shares may open lower on Monday as there are no new good support factors, trade war did not have any good progress and Trump threatened Europe after EU tax U.S. products.
Euro may try to hold steady above 1.1650 dollar after Italy assure to stay in EU on last Friday but EUR/USD may swing 1.1600-1.1700 on Monday. If euro cannot break 1.1700, it may slightly fall lower to 1.1600 and then 1.11500 dollar. While Bitcoin price fell lowest in 2018 at 5762.90 dollar but closed at 6148 dollar on last Saturday. The rising sell volume may pressure Bitcoin price fall lower than 6,100 dollar again on Monday.
Economic indices in focus:
• Germany: Business Climate Index at 15.00 p.m.
• USA: New home sales at 21.00 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review