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In an interview with Dubai TV, Director of Research and Development at Noor Capital, Mohamed Hashad takes a closer look at the markets.
US Stimulus and Dollar
Hashad says that the US stimulus plan is still one of the most important drivers of global financial markets and had a clear impact on the US dollar. Hashad believes that the dollar began trading this week in a defensive zone trying to find support after the approval of a stimulus plan of 500 billion US dollars, but uncertainty remains prevailing with the likelihood that the Democratic will reject this small package while waiting to see whether the US government will implement the package before or after the elections, Hashad believes that there will be no stimulus before the election.
Brexit
The Brexit puzzle remains as it is and the sticking points are the same with the unpromising statements recently from Prime Minister Boris Johnson urging UK financial institutions to deal with European Union countries such as dealing with Australia, which is a hint to exit without an agreement, which will have a negative impact on Sterling. Still, the main problems for Brexit are fisheries and hard borders.
Gold
Gold prices are stable between 1,900 and 1,935 with a weekly loss of 1%, and there are many signs of a possible downturn, such as an increase in the possession of the US dollar and a reluctance to dollar-denominated with the statements of the International Monetary Fund of the approaching recovery of the global economy, which led to the decline of gold, but at the same time, still, There are signs of continued gold possession as Corona cases continue to increase
Oil
There are 3 reasons that prevent oil from continuing to rise, which is the recovery of demand and the continued increase in coronavirus cases, especially in some European Union countries, which have already started partial lockdown, in addition to the increase in Libyan oil production about 500 thousand barrels per day despite OPEC’s attempts to support prices. Hashad believes that the price range in the coming period will range between 35 and 45 dollars, which is a fair price under the current circumstances.