Crude oil ( MCX ) maintain BUY for TARGET 3468
Risk traders can wait for UPPER freeze CMP 3405
Thursday, October 26, 2017
Gold once again met with some fresh supply near the $1283 supply zone
The precious metal's initial up-move was being capped by a modest pickup in the greenback demand. In fact, the key US Dollar Index has managed to recover early losses and was seen weighing on dollar-denominated commodities - like gold.
Adding to this, buoyant trading sentiment around European equity markets, which tends to dent demand for traditional safe-haven assets, also did little to provide any boost to the yellow metal's recovery move from near three-week lows touched on Wednesday.
However, sliding US Treasury bond yields might now contribute towards limiting any sharp downslide for the non-yielding commodity, at least for the time being.
Next on tap would be the US economic docket, which would be looked upon for some short-term trading opportunities. Also in focus would be the ECB decision, which is expected to infuse some volatility in the FX market and might influence the metal's safe-haven demand.
Adding to this, buoyant trading sentiment around European equity markets, which tends to dent demand for traditional safe-haven assets, also did little to provide any boost to the yellow metal's recovery move from near three-week lows touched on Wednesday.
However, sliding US Treasury bond yields might now contribute towards limiting any sharp downslide for the non-yielding commodity, at least for the time being.
Next on tap would be the US economic docket, which would be looked upon for some short-term trading opportunities. Also in focus would be the ECB decision, which is expected to infuse some volatility in the FX market and might influence the metal's safe-haven demand.
Crude Oil regains $ 52 mark on Saudi Crown Prince comments
The black gold is seen back on the bids, as the bulls found fresh impetus from the comments delivered by the Saudi Crown Prince, backing the case for OPEC oil cut deal extension into 2018. His comments make it more certain that the cartel and its allies are set to extend the curbs, when they meet next month.
However, it remains to be seen if the commodity manages to hold the recovery amid broad-based US dollar rebound and bearish EIA crude inventory report released a day before. The EIA data showed that the US crude inventories rose by 856,000 barrels last week.
Meanwhile, markets also play close attention to the much-awaited ECB meeting for fresh impetus across the fx space, which will eventually have some bearing on the USD-sensitive oil.
At the time of writing, WTI rises +0.15% to $ 52.25, while Brent trades flat at $ 58.42.
WTI Technical Levels
Higher-side levels: 52.57 (4-week high), $53.21 (Apr 16 high), $ 54 (round number)
Lower-side levels: 51.94 (10-DMA), 51.50 (psychological levels), 51.23 (20-DMA)
However, it remains to be seen if the commodity manages to hold the recovery amid broad-based US dollar rebound and bearish EIA crude inventory report released a day before. The EIA data showed that the US crude inventories rose by 856,000 barrels last week.
Meanwhile, markets also play close attention to the much-awaited ECB meeting for fresh impetus across the fx space, which will eventually have some bearing on the USD-sensitive oil.
At the time of writing, WTI rises +0.15% to $ 52.25, while Brent trades flat at $ 58.42.
WTI Technical Levels
Higher-side levels: 52.57 (4-week high), $53.21 (Apr 16 high), $ 54 (round number)
Lower-side levels: 51.94 (10-DMA), 51.50 (psychological levels), 51.23 (20-DMA)
EUR/GBP rallies hard to test 0.8950
After a brief phase of consolidation just ahead of 0.89 handle, the cross in EUR/GBP picked-up solid pace and rallied hard to recover more than 75% of yesterday’s slide.
The latest upsurge in the spot can be mainly attributed to broad-based selling in the pound, as investors resorted to profit-taking after yesterday’s strong UK GDP induced rebound, while a recovery in the US dollar across the board also added to the GBP’s downside.
On the EUR-side of the equation, the EUR/USD pair shaved-off gains and reverted to 1.18 handle amid increased nervousness ahead of the ECB QE tapering announcement, which appears to keep further upside limited in EUR/GBP.
Meanwhile, the cross ignored the German consumer climate and Spanish employment numbers, as all eyes remain on the ECB decision for fresh direction.
The latest upsurge in the spot can be mainly attributed to broad-based selling in the pound, as investors resorted to profit-taking after yesterday’s strong UK GDP induced rebound, while a recovery in the US dollar across the board also added to the GBP’s downside.
On the EUR-side of the equation, the EUR/USD pair shaved-off gains and reverted to 1.18 handle amid increased nervousness ahead of the ECB QE tapering announcement, which appears to keep further upside limited in EUR/GBP.
Meanwhile, the cross ignored the German consumer climate and Spanish employment numbers, as all eyes remain on the ECB decision for fresh direction.
EUR/USD rangebound ahead of ECB event
Yesterday’s strong advance and close beyond the 1.1800 handle has been accompanied by a marginal drop in open interest while volume rebounded sharply. The recent activity in open interest coupled with choppy price action in EUR/USD leaves the door open for further rangebound ahead of the ECB gathering. However, the increase in volume might add to the view that traders could be positioned for a bull run.
Saudi Prince backs extending OPEC output cuts
Bloomberg reports comments from Mohammad bin Salman, the Crown Prince of Saudi Arabia, advocating the case for OPEC oil output cut deal extension.
His comments make it more certain that the cartel and its allies are set to extend the curbs when they meet next month.
Oil market is absorbing excess shale oil, we are regaining things again
Backs extending OPEC output cuts into 2018
His comments make it more certain that the cartel and its allies are set to extend the curbs when they meet next month.
Oil market is absorbing excess shale oil, we are regaining things again
Backs extending OPEC output cuts into 2018
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