The mass strike has caused six offshore oil and gas fields in Norway to halt operations at the beginning of the week on Monday (October 5). Many rig workers are reported to have joined the protest demanding salary adjustments.

The workers' strike has disrupted oil supplies by up to 300 thousand barrels per day (bpd), 8% of Norway's total national production. Although oil prices fell slightly in Asian trading this morning, it is possible that prices will spike again because an agreement has not been reached between workers and Norwegian oil companies.

Market review and economic data to be released today:

  1. Gold prices have the potential to strengthen in the short term due to the weakening sentiment of the US dollar, driven by market optimism over the potential stimulus deal in the US following optimistic statements from the Democratic Party and the White House. Today's focus will be on the US Trade Balance data at 19:30 WIB and JOLTS Job Openings at 21:00 WIB.
  2. Oil prices have the potential to rise in the short term due to the weakening US dollar, the improving health of President Trump, and the halt in oil production in Norway due to widespread strikes by workers. However, the increase may be limited if the market resumes concerns about the outlook for slowing demand and global oversupply following increased production in OPEC countries.
  3. EURUSD has the potential to strengthen in the short term amid the weakening US dollar, positive economic data from the Eurozone yesterday, and statements from Germany's finance minister that there will be no second-phase lockdowns or tax hikes during the pandemic. Today's focus will be on Germany's Factory Orders data at 13:00 WIB, followed by two speeches from ECB President Christine Lagarde, at 15:35 WIB and 20:00 WIB.
  4. GBPUSD has the potential to maintain its short-term uptrend amid the weakening US dollar and an optimistic outlook for a Brexit deal, as UK Prime Minister Johnson and European Commission President Ursula von der Leyen agreed to close the "gaps" hindering a new trade partnership between both parties. Today's focus will be on the UK Construction PMI data at 15:30 WIB.
  5. AUDUSD has the potential to move volatile today after weakening at the start of trading due to pessimistic Australian trade balance data. The next focus will be on the latest monetary decision by the Australian central bank at 10:30 WIB. If they give an optimistic statement and attitude, it has the potential to trigger strengthening of AUDUSD, and vice versa.

Daily Pick

Today's prediction is on the UJ pair (USDJPY) which is expected to decline and the recommended OP is SELL at level 105,600. With a profit target of 10 - 20 points and a stop loss of 5-10 points.

  • SELL at Level 105,600
  • TP 1 : 105.50 (10 Point)
  • TP 2 : 105.40 (20 Point)
  • SL 1 : 105.65 (5 Point)
  • SL 2 : 105.70 (10 Point)

Always prioritize Money Management and Risk Management.

Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and the GIC Trade Telegram Channel. Don't forget to check the GIC Indonesia YouTube account, which is full of valuable information, and follow our Instagram account to get updates on various interesting webinars that you can attend.