Oil prices fall, the US dollar remains at its weakest level in almost a year

Another attempt by the Republicans to replace Obamacare failed, which casts doubt on Trump’s ability to carry out the restructuring of the tax system in the United States promised in the election campaign.

This had a negative effect on the dollar exchange rate. The USDAUD pair was trading at the two-year low, and USDCHF at the yearly low. The losses of USDJPY were limited, as the Central Bank of Japan adheres to its large-scale incentive plan, which contributed to a drop in yield. The euro traded steadily at 1.1542 at the beginning of the session: investors are cautious ahead of the ECB monetary policy meeting to be held on Thursday.

In Asia, positive economic news from China supported the mood of investors. The MSCI index grew by 0.4%, and NIKKEI – by 0.1%. The fall of the US dollar and optimistic data from China contributed to the rise in the cost of commodities: everything went up from copper to iron ore. Gold was no exception and rose 0.1% to $ 1243.35 an ounce.

Oil prices fell on Wednesday after the publication of higher oil reserves in the US and increased production in the OPEC countries. OPEC member countries Libya and Nigeria increased supplies despite an agreement to cut production. The data show that the production of Libya exceeds 1 million barrels per day, while Nigeria – more than 2 million a day. The reason why these two countries continue to increase production is that they are not parties to an agreement between other OPEC producers to reduce oil production from January this year to March 2018.

Brent crude oil fell 3 cents from the closing price of the latest trading and traded at $ 48.80 at the beginning of today’s trading. Oil WTI in the US fell by 7 cents at the beginning of trading.

Further today we will see Permits for construction in the US: the report reflects the annual indicator of permits for the construction of new residential buildings issued last month. At 15:30 GMT we will again see the reserves of crude oil in the US. According to preliminary forecasts, the change is expected to reach -3.6 million against the previous indicator of -7.6%.