Both a positive and a negative G20 outcome might lead to high-beta underperforming. Keep a defensive exposure via longs in non-USD reserve FX.
The G20 should shape the OPEC+ decision. With a truce existing cuts might be extended but an impasse would trigger a larger response.
The U.S. crude-oil inventories recently fell 12.8 million barrels last week, the largest weekly decline since September 2016, government data showed Wednesday. The stockpile drop pushed up oil 2.7% to a one-month high and boosted bond yields by signaling a rebound in fuel consumption and economic activity.
Fundamentally, weaker oil prices pose a challenge to the OPEC (Organization of the Petroleum Exporting Countries). Later this month, the association and its Russia-led allies, in addition, will assemble in Vienna to reassess the global demand/supply equation for the rest of the year.
Updates on crude oil derivatives trades on hedging grounds: In crude oil segment, we initiated a risk reversal strategy by going long in Brent Dec’19 10D call versus short Dec’19 10D put. They also went tactically short Brent-Dubai Q3’19 swap spread due to mounting risks from Iran sanctions.
In addition, we activated WTI crude directional hedge, by rolling over shorts CME WTI futures for July delivery for arresting downside risks in short-run, simultaneously, longs in CME WTI futures of August’2019 month deliveries.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 79 levels (which is bullish), while hourly USD spot index was at 47 (mildly bullish) while articulating (at 10:44 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex


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