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EU Hesitant on Russian Oil Ban, GBPUSD Climbs after Jerome Powell’s Inflation Comments & Tesla’s New German Factory

Oil falls from 1-week high, as EU hesitant on Russian oil ban

Crude prices moved away from earlier highs, following reports that the European Union was hesitant to ban Russian oil.

WTI fell from an earlier high of $115.73, as it was reported that the EU was not ready to follow the U.S. in setting an oil embargo.

The United States banned all imports of Russian oil earlier this month, following Russia’s invasion on Ukraine, with several other sanctions put in place.

However, despite the EU also sanctioning Russia. its dependency on Russian oil makes it difficult to pursue a full embargo.

According to an official EU source, “Only a minority of countries are in favour [of an oil embargo]”.

WTI was trading at $111.75 as of writing.

GBPUSD climbs to multi-week high

Following the comments of Federal Reserve Chair Jerome Powell on Monday, cable traders continued to long this pair in today’s session.

GBPUSD raced to its highest point since March 4th, following a breakout of its long-term resistance level of 1.3182.

The move came as Powell stated that he and the FOMC were open to raising rates by over 25 basis points in upcoming meetings.

Powell made the comments that further rises in inflation beyond Q1, could lead to stronger action from the Fed.

As of writing, cable was trading at 1.3256, following its biggest one-day percentage gain since March 10th.

Tesla shares up, as company opens German factory

Shares in Tesla were trading higher during today’s session, as the company officially opened a factory in Germany.

Giga Berlin will be Tesla’s first factory outside of the United States and China and comes following Elon Musk’s promise to open a German factory back in 2019.

At the time, Musk said, “Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany”.

This factory is now expected to manufacture 500,000 per year, taking the pressure of some of its other production facilities.  

As of writing this, $TSLA was 6.23% higher.

“Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.”

–John Templeton.

Eliman Dambell

Senior Market Analyst