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WTI Bounces Back Over $32.00 per Barrel

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Monday’s highlight was Germany’s Ifo (compiled by the Institute for Economic Research) Business Climate Index release. This Index is measuring and rating Germany’s business climate. Also, it measures the expected values for the next six months. It is basically a consolidation of approximately 7,000 survey responses from retailers, wholesalers, manufacturers and builders conducted in order to arrive at the publishable figures.

According to latest data, January’s figure dropped to 107.3, scoring lower than expected and also lowers than December’s 108.7. The Current Assessment Index was also downgraded to 112.5 from previous 112.8 with investors were looking towards an unchanged value. A sharp fall was registered also in the Expectation Index, from December’s 104.7 to the current 102.4 below expectations. The Ifo Business Climate Index is an important index for Germany’s economic activity. Germany being regarded as the largest economy in the Eurozone, its business climate has a large impact, on the whole, Eurozone sentiment. The point is, this index is of uttermost importance for investors and market actors.

Looking back to yesterday, we can see that the sterling continued to move up as the American afternoon passed, reaching an 11-day high against the greenback. The GBP/USD went on last week’s spread, marking its highest level since the 15th of January, meaning 1.4366, further extending its recovery from the multi-year low hit on Thursday. The upward hike was sustained by the bullish sentiment coming from the oil’s comeback. So, we can say that the British currency shrugged off the dovish remarks which came from BoE’s (Bank of England) Governor Mark Carney. Looking back, he stated last Tuesday that there are unsuitable conditions for a rate hike, adding that the bank is looking forward and taking into consideration future rate cuts if appropriate.

[Tweet “The WTI crude traded at $32.02 per barrel with over 5.5% in gains”]

For which regards the black gold, prices continued to advance in the New York afternoon reaching fresh highs above the $32.00 per barrel mark. The WTI (West Texas Intermediate) crude traded at $32.02 per barrel with over 5.5% in gains and a session high of $32.19/barrel coming from a session low of $29.25 earlier in the day. Later today, investors will be focused on the API (American Petroleum Institute) inventory release at 21:30 GMT and on EIA’s (Energy Information Administration) report, which is expected to shed some light over the US stockpile which is expected to have risen around 3.5 million barrels in the week ending with the 22nd of January.

Oil prices still remain among the main factors in the global economy, driving up the commodity currencies and equities.

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