Oil Moves Not Spilling Into Other Markets
As we know now, there was an attack on Saudi Oil processing facility at Abqaiq which wiped out 50% of the kingdom’s Oil output. As a result, Crude Oil has surged higher overnight, with UK Brent crude trading around $66 now, while US WTI crude surged nearly $10 to $63.
That was an enormous move and the other markets responded when they opened, although the response was pretty weak. Safe havens opened with a bullish gap higher worth around $16, while USD/JPY opened with a bearish gap lower, falling below 108 again.
Stock markets also opened with a bearish gap, but that was it. We haven’t seen a follow through during the Asian and European sessions so far. Normally, the impact on other markets would have been huge, especially for safe havens and risk assets, but they seem to be ignoring the attack on Saudi Arabia and the volatility in Oil prices.
Anyway, this is better for us since really high volatility would make it difficult to trade forex. We’re keeping our trading strategy as it was before and picking trades here and there, despite last night’s Oil moves.
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