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Oil Rises Above $100, Euro Rebounds Ahead of ECB Meeting & Bank Of America’s Earnings Report

Oil back above $100, despite Biden’s Saudi appeal

Crude oil prices were back above $100 per barrel on Monday, despite efforts from U.S. President Biden to encourage Saudi Arabia to increase supply.

Biden met with Saudi ruler MBS over the weekend, where it was reported that the President made a plea to the kingdom to boost output.

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Despite this, oil prices were once again higher, markets continued to be nervous about escalating tensions with Russia and Ukraine, and the impact this could have on supply.

After trading at a five month low towards the end of last week, prices are now once again on the rise.

As of writing, WTI is trading at $102.09.

Euro rebounds ahead of this week’s ECB meeting

Days after falling below the U.S. Dollar, the Euro has once again regained parity, sparked by hopes of policy change from the latest ECB meeting.

The European Central Bank will hold its monthly policy meeting this week, where it is expected to announce a rate hike.

Should they move forward with a hike, which many expect to be around 25 basis points, it would be the first time this decade the bank has increased rates.

As inflation continues to rise to record levels, the bank has now exhausted all other options, and seems to have no other alternative than to update its policy.

EURUSD rose to a peak of $1.0144 on Monday.

Bank of America earnings beat expectations

Shares in Bank of America were marginally lower on Monday, as the company released its Q2 earnings report.

The bank reported that earnings had marginally risen, climbing to 78 cents per share versus expectations of 75 cents a share.

In addition to this revenue also rose, coming in at $22.79 billion in the second quarter vs. $22.67 billion expected.

This comes whilst overall profits fell by 32% from the same period last year, as market conditions continue to change.

Speaking after the report, CEO Brian Moynihan stated that, “Solid client activity across our businesses, coupled with higher interest rates, drove strong net interest income growth and allowed us to perform well in a weakened capital markets environment”.

At the close shares in the company were up 0.03% to $32.26 per share.

The hard, cold reality of trading is that every trade has an uncertain outcome.”

-Mark Douglas

Eliman Dambell

Senior Market Analyst