Strong US labor market and a less hawkish Fed are playing in favour of crude oil price
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Crude oil is also experiencing higher levels of volatility and has declined by 1.20% over the past 2 hours. The main concern for oil exporters and companies is if the economy is now at a higher risk of a recession. However, most analysts still believe the asset's price is likely to remain within the $10 price range unless the SVB crisis turns into a banking crisis.
Though investors should note that some positive factors are also influencing the price of crude oil, the labor market in the US is still extremely strong, and a less hawkish Fed is known to be positive for oil. Traders should also note that analysts expect higher volatility during tomorrow’s CPI release for all assets, including oil.
Traders should also note that analysts expect higher volatility during tomorrow’s CPI release for all assets, including oil
Read the first part of the update by NAGA: Euro against US dollar: According to NAGA, SVB case is mainly linked to the US market, while Europe may remain untouched| FXMAG.COM
Crude Oil 1-Hour Chart on March 13th
Summary of the update by NAGA:
- Depositors cannot access funds at SVB as the Fed and US Treasury step in. Investors fear the SVB crisis will develop into a banking crisis.
- The US Dollar significantly declines due to the SVB collapse and as interest rate hikes in doubt.
- US Employment figures show a strong employment sector and a resilient economy.
- Safe haven assets, bar the US Dollar and other alternatives, thrive as Dollar significantly declines.
