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Oil Drops to $70 and BTC below 31K

Today, a new trading week starts with a few releases and economic events. However, over the weekend there have been some noteworthy developments in the global markets.

On Friday, the S&P 500 and Nasdaq were down 0.8%, the Euro Stoxx 50 also experienced declines and was down 0.6% on Friday. Meanwhile, 10-year US Treasuries fell below 1.30% to 1.28%.

OPEC+ Deal while Bitcoin Falls Below 31K

Over the weekend, the long-awaited deal between the OPEC+ countries was finally signed. The Organization of the Petroleum Exporting Countries and their allies (OPEC+) reached an agreement whereby starting in August and until the disrupted production is restored, 400,000 barrels per day will be added to the output.

The signed agreement will allow for higher baselines for the UAE, Saudi Arabia, Russia, Iraq, and Kuwait against which their cuts are measured from May 2022. At the time of writing, West Texas Intermediate (WTI) for August delivery was around $70.82 a barrel and Brent for September delivery was down to $72.51 a barrel.

Oil is not the only asset to have had an eventful weekend. Cryptocurrencies experienced high volatility as well. Over the weekend, Bitcoin fell to a 19-day low, trading around 31K while its counterparts were also dragged down with Ethereum falling below $2,000.

This week’s events could generate volatility in the financial markets:

  • UK Minister Boris Johnson is isolated after being exposed to Covid-19
  • US housing starts data will be released on Tuesday
  • The European Central Bank will give further clues about its monetary policy on Thursday
  • Japan’s Olympic Games begin on Friday

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