Correlation between the British currency and oil | 03 February 2022

GBPUSD trading plan:

The Bank of England meeting will be more hawkish, with a likely second hike in UK interest rates since December. But with 100bps more of rate rises already priced by yearend, a lot is already discounted. U.S. crude oil and distillate inventories fell last week as fuel demand increased to its highest level since August 2019, the Energy Information Administration said. Crude stocks are nearing low levels not seen since October 2018, when inventories were at 409 million barrels. This is a positive signal for oil prices and the British currency, as assets correlate with each other.

Investment idea: buy 1.3537 and take profit 1.3588.