American Independence Day holiday, oil price staged a diving
On Tuesday (July 3), the US dollar was lower. Before the advent of the US Independence Day holiday, trading was light. Investors consolidated their recent gains and lowered their attention to trade tensions, boosting market risk appetite. At the same time, the euro strengthened after the German coalition government resolved the differences on immigration issues. The immigration problem almost led to the disintegration of the German Chancellor Merkel’s government.
Gold prices rebounded from a low of nearly seven months on Tuesday as the dollar fell. Investors are waiting for the minutes of the Fed's June meeting to be released on Thursday and the non-farm payrolls data released on Friday to find clues about the direction of the Fed's monetary policy decision.
In terms of crude oil, the media reported that the Saudi cabinet confirmed that it will increase production, which caused the market to worry that Saudi Arabia will succumb to US pressure and increase its production capacity. As a result, oil prices once fell sharply, but then rebounded. According to the data, API crude oil inventories decreased by 4.5 million barrels last week, which was more than market expectations.