Following new developments in the US-Iraq indirect negotiations, energy fluctuated in tandem with the encryption market. The market, on the one hand, digests the signs of a easing of the situation in the Middle East and, on the other hand, is concerned about the expected changes in interest rates as a result of the slower growth of employment in the United States, the fall in international oil prices and the continuation of the rebound in bitcoin.

Negotiations will resume on 18 July

According to the Ministry of Foreign Affairs of Pakistan, the United States-Iran negotiators ended a round of indirect talks in Doha with the participation of Qatar and Pakistan. According to the Palestinian side, the talks were “positive” and the parties agreed to resume negotiations on 18 July.

Prior to that, Trump also stated that the negotiations between the United States and Iran were “successful” and that the Iranian nuclear process was moving forward. This expectation was further reinforced by the official tone of the statements, which improved market sentiment.

Oil prices fell to over four months low.

The crude oil market quickly collapsed after news of the continuation of the negotiations. Market judgment suggests that if tensions continue to cool down in the Middle East, the crude oil supply risk premium may contract further.

  • WTI Oil fell to 67.34 USD per barrel
  • Brent oil dropped to 70.39 per barrel.
  • WTI, break. 125 days low.

According to the report, WTI has been falling steadily since its first stop in May, after $100, and has recently fallen to levels around $70, $67.5 and $67. The price of gasoline has also fallen by about 70 cents over the past month.

America’s employment cooling supports risk assets

In addition to geo-related factors, the latest employment data for the United States also contributed to a recovery in risk preferences. Data from the United States Bureau of Labor Statistics show that in June, 57,000 people were added to non-farm employment, significantly below the market target of 115,000; in May, the figure was also revised to 43 million.

In June, however, the unemployment rate was 4.2 per cent, slightly below the expected 4.3 per cent. This means that recruitment has slowed, but the labour market has not been significantly unstable. As a result, the market has lowered expectations of further interest rate hikes during the year.

Bitcoin goes up to about $6.15 million.

Against the backdrop of the fall in oil prices and the expected cooling of interest rates, bitcoin has risen by about 2.5 per cent over the past 24 hours to around US$ 61,542. Markets are seen as one of the direct benefit assets of improved risk preferences.

It was also mentioned that the area of short-term interest remained close to $62,500. The position overlaps with a long-term downward trend line and a retreat position. If the price station is around, there may be a change in the sorting pattern for almost a month; if it fails, the market will continue to observe the next round of US-Iraq negotiations on July 18 and the subsequent US economic data.