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Oil Turns Bearish Ahead of Doha Meeting

Oil Turns Bearish Ahead of Doha Meeting

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All eyes will be on the Doha meeting today (Sunday, April 17th), at which OPEC and non-OPEC oil producers will meet to discuss a production freeze on crude oil production despite ongoing disagreements among the member countries.

Weekly Review

Central banks continue to proceed cautiously on monetary policy opting to wait for more data before being convinced that deflationary pressures are receding. This week, UK's consumer price index data showed a 0.50% increase in March on the headline while the core CPI jumped 1.50%, both beating estimates and rising above the previous month's reading. However, it failed to evoke any hawkish response from the Bank of England, which met later in the week. Brushing aside the data, the BoE attributed the rise in inflation due to seasonal trends, namely the 'Easter Effects' as the bank remained dovish in its outlook leaving interest rate at 0.50%. The Bank of Canada's rate statement also saw a similar tone, but it raised its forecasts on GDP for the first half of the year.

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The Week Ahead

In Australia, the labor markets continue to push ahead strongly as the unemployment rate fell to 5.70% in March, while the economy added 26.1k jobs during the month. But most of the gains came from a surge in part-time employment while full-time positions deteriorated. Regardless, the RBA is unlikely to push for any further rate cuts for the time being.

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