Despite the flat to lower equities this morning, oil has been trading with an unusual bid tone now up nearly 6.0% on the day. The driving forces behind the price action seem to be coming from overnight rumors that OPEC would once again be looking to cut production after the group’s secretary general said that the current prices were unacceptable. Also contributing to the bid tone potentially has been another rumor that China could be looking to make a significant investment into raw materials in the short-term. After trading through critical resistance at 1.3020 all the way to 1.3065, the market has pulled back sharply below 1.3000, with the rebound in oil seen weighing on the pair. Elsewhere, Eur/Usd has been rallying sharply in the US session with the rebound in US equities out from their lows helping to prop.
