EUR/USD at 1.1317. Goldman Sachs lowered its forecast for oil.

EUR/USD slightly rose during Asian session today. As of 03:00 AM EDT the pair was trading at 1.1317, which is 0.07% higher than the previous close.

Asian shares finished mostly higher. The performance of major indices is presented below:

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  • Shanghai Composite closed at 2,850.86, up 0.84%.
  • Nikkei 225 increased 0.33% finishing at 16,466.40.
  • Hang Seng was trading at 19,873.55 as of 3:51 PM HKT, which is 0.78% above the previous close.
  • S&P/ASX 200 closed at 5,358.90, up 0.56%.
  • India’s Sensex was trading at 25,436.21 as of 1:23 PM IST, which represents a 0.21% decline from the previous close.

Goldman Sachs lowered their oil price forecast to 52.5 USD/bbl from 57.5 USD/bbl for 2017, stating that in the Q1 the prices will fall to 45 USD/bbl and recover to 60 USD/bbl by the Q4.

“We expect that deferred prices will start to stabilize, consistent with the recent increase in producer hedging as they near their marginal costs. We believe the industry still has further to adjust and our updated forecast maintains the same 2016-2017 price level we previously believed was required to finally correct both the barrel and capital imbalances, and eventually take prices to 60 USD/bbl” written on the report from Goldman.

Oil prices increased during Asian hours. As of 3:24 AM EDT the WTI Crude was trading at 46.87 USD/bbl up 1.43% and Brent Crude at 48.50 USD/bbl, which is 1.40% higher than the previous close.

“Prices are definitely on an uptrend, but profit-taking will keep prices under $50 for a while unless there are any dramatic events that could help rebalance the market” said Gao Jian from SCI International.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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