Important events today:

15:30 UTC – US: Crude oil inventory data from the Department of Energy.

We use the decline in quotations to open a Buy position for two reasons. First, on the interbank lending market in London the interest rates on loans in pounds are growing, which indicates the high interest of bankers in the British currency. The same rates on dollar show small fluctuations and are in flat, which is negative for strengthening of the American currency.

Secondly, I expect rising oil prices, which will provide additional support to the pound, as the assets are historically well correlated with each other. The refusal of the Chinese authorities from their “zero tolerance policy towards Covid” will have a favorable effect on the price of the black gold. The actions of the Chinese authorities cheered up the traders in the commodities market and this week we see good growth in all commodities. Pay attention to copper, the key industrial metal has been in a good uptrend since October and it made a six-month high. Copper has always been the leading indicator for the commodities market in general and oil in particular in the past.

Recommendations: Buy 1.2140/1.2095 and TP 1.2211.