Forecast: Brent may rise in price
Baku, Azerbaijan, July 29
By Eldar Janashvili – Trend:
Due to the growth of political tension in the areas of global oil transportation routes, the cost of Brent crude oil could increase from $63-64 to $66 per barrel, according to the weekly summary of the Azerbaijani investment company InvestAZ, Trend reports.
Statistical data from the US on oil reserves in storage, which will be published on July 31 at 18:30 (UTC +4), will have a strong impact on the price of oil.
InvestAZ analysts also present the current state of the international financial markets and short-term expected forecasts.
The percentage decision of the US Central Bank (July 31 at 22:00 (UTC +4)) will be in the focus of attention on international stock exchanges this week (July 29-August 2). Due to weaker growth and inflation, the likelihood of a first percent decline has increased within the last 10 years. Along with this, against the backdrop of the next stage of US-China trade negotiations this week, investors are keeping an eye out for important fundamental indicators of the labor market, which will be announced on August 2 at 16:30 (UTC +4).
It is also expected that important indicators on economic development, unemployment and inflation will affect the euro, which will be published on July 31 at 13:00 (UTC +4), while forecasts of the global stock market suggesting that the euro may fall in price to $1.10 are supported by forecasts of a decrease in inflation.
The exchange rate of the pound sterling against the US dollar stands at below $1.24, and is expected to drop to the $1.22 mark. The disagreement of the new British Prime Minister Boris Johnson with the agreement of the European Commission regarding the backstop also increases political pressure on the pound.
Among the important events is the decision on the interest rate of the Bank of England, which will be broadcast on August 1 at 15:00 (UTC +4), as well as a press conference, which will be held immediately after the decision, at 15:30 (UTC +4).
The growth of global political and economic risks in dollars is also one of the factors influencing the depreciation of the pound sterling against the US dollar.
The USD / TRY currency pair is trading at the level of 5.67 Turkish liras per dollar, and if this mark rises above 5.68 TL, then the dollar will probably rise to 5.76 TL.
The focus of investors is on the fundamentals of Turkey’s foreign trade balance (July 31, 11:00 (UTC +4)) and industrial activity at (August 1, 11:00 (UTC +4)).
A correction in gold can be observed in the markets of non-ferrous metals, amid a wave of rapid growth in the price per ounce. According to the analysis, if the price reaches $1,410 ($45.3 / gram), then it can go down to $1,395 ($44.9 / gram).