OPEC Production Cuts = Lower Oil Prices?
I got a bit confused today about the OPEC decision and the EUR/NOK response.
If OPEC decided to extend the oil production cuts, this should increase the value of oil and put a downward pressure on the EUR/NOK. Why did this pair (and not just it, I guess) go against this expectation?
Alex G. – Warrington PA
Great question and one that I received from many clients today.
First, it was very frustrating to see that reaction, especially when the price action seemed to defy the logic you laid out.
Sadly markets can often react in a way that seems inconsistent with what logic would dictate. Maybe in this instance the recent rise in oil priced in this OPEC decision. Buy the rumor; sell the fact so to speak.
All we know if we were stopped out and that is part of trading.
Have a question for me? Just ask.