Forecast: Oil prices may drop to $57 per barrel

30 September 2019 15:53 (UTC+04:00)

By Trend

Oil prices at energy exchanges continue falling down, according to the weekly summary of the Azerbaijani investment company InvestAZ, Trend reports.

Oil prices may drop to $57, despite the support of bull trading at $60, according to the forecast.

Statistical data from the US on oil reserves in storage to be reported Oct. 2 at 18:30 (GMT +4), will have a strong impact on the price of oil.

InvestAZ analysts also presented the current status in the international financial markets and short-term forecasts.

EUR

Lower expectations for the support of the Eurozone economy, the soft monetary policy of the European Central Bank has contributed to the depreciation of the euro on international foreign currency exchanges to a minimum level over the past two years. Important fundamental data on inflation in the Eurozone (October 1 at 13:00) and the US labor market (October 4 at 16:30) this week will increase the volatility of the exchange rate of the euro against the US dollar.

According to the analysis, the EUR/USD rate may continue to decline to $1.08 if trading continues at $1.10.

GBP

The likelihood that the UK government may resort to a no-deal Brexit remains on the agenda. This contributes to the fact that the pound continues to become cheaper. In the Forex market, it is forecasted that the GBP/USD rate may fall to $1.22.

In addition, the index of economic activity in the UK industry and services, which will be published on Oct. 1 and Oct. 3 at 12:30 (GMT +4), are in the focus of investors.

TRY

The USD/TRY rate remains at 5.65 liras. It is predicted that the rate may reach 5.71 and 5.75 liras.

After the announcement of negative fundamental indicators on reduction of industrial and retail trade in Turkey, deterioration is also expected in the statistical data on inflation, which will be published at 11:00 (GMT +4) on Oct. 3.

Gold

Adjustment in gold prices has been observed in the non-ferrous metals market last week. It is predicted that the prices may drop to $1,461 ($47.2 per gram).

The fall in gold prices is conditioned by the increase in positive expectations of the rapprochement between the US and China. The trade crisis between the two countries, in addition to increasing global political and economic risks over the past year, also contributed to the increase in demand for gold, as a reliable investment tool.

--

Follow us on Twitter @AzerNewsAz