0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.87% Gold: 0.40% Oil - US Crude: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9zzrCQMv2s
  • S&P 500 price is within striking distance of hitting all-time highs as stocks continue to rally. Get your market update from @RichDvorakFX here: https://t.co/pKvJ9wv9VY https://t.co/kkbBSDDVo8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.94%, while traders in US 500 are at opposite extremes with 78.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ycy6nhUEDm
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.09% US 500: -0.02% Wall Street: -0.07% France 40: -0.14% FTSE 100: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/6KHC1wW7Wo
  • Ugly numbers but (always a but with data), June monthly GDP +8.7% gives hope.... https://t.co/CYevGpL7g5
  • Fed's Daly: #Fed committed to making inflation goal of 2% - BBG
  • With the S&P 500 just topping its all-time record high and the 10YR Treasury yield up again now to 67-bps, yesterday's selloff in stocks looks more like it had to do with margin calls related to the sharp reversal in precious metals.
  • I know it came out a while back but wow, prelim UK GDP data for Q2 QoQ was -20.4%, and YoY was -21.7%.
  • New Zealand Dollar weakness has erupted after a dovish RBNZ rate decision. Get your $NZDUSD market update from @PeterHanksFX here: https://t.co/4FzlO7o6NV https://t.co/zV2Ih55baV
  • Fed's Daly: Evidence that fiscal stimulus is providing help to economy - BBG
Crude Oil Prices May Extend Drop After Covid-19 Surge, Biden Speech

Crude Oil Prices May Extend Drop After Covid-19 Surge, Biden Speech

2020-07-09 23:00:00
Dimitri Zabelin, Analyst
Share:

Crude Oil Prices, Singapore Election, Coronavirus, Wall Street Stocks – TALKING POINTS

  • Wall Street stocks closed lower after Florida medical metrics showed an alarming trend
  • Risk-off tilt amplified by commentary from Democratic Presidential candidate Joe Biden
  • Crude oil prices suffered largest one-day decline in almost a month – what happens now?

Wall Street stocks were hammered, first by alarming medical metrics coming out of Florida and then by an uncharacteristically populist tilt in comments by Democratic presidential candidate Joe Biden. The Dow Jones and S&P 500 indices closed 1.38 and 0.57 lower, respectively, while the tech-leaning Nasdaq index closed just a hair above 0.53 percent.

The latter’s strength underscores the resilience of technology-leaning equities amid the Covid-19 pandemic. Their impressive rise appears to have been in large part due to work-from-home policies that in turn have generated more demand for internet-based services. The biggest loser in the industrial-oriented Dow Jones index was the energy subcomponent, and specifically the Oil, Gas & Consumable Fuels sector.

The significant drop in the S&P 500 index came after Florida reported that Covid-related deaths were up to a record of 120. The prior report had them at 48. New hospitalizations also showed a record 409 reading, far above the prior 333 report. Those alarming medical metrics exacerbated the growing fear that another surge in coronavirus cases could compel officials to re-implement or extend growth-hampering lockdown measures.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Dimitri Zabelin
Improve your trading with IG Client Sentiment Data
Get My Guide

As a cycle-sensitive commodity, crude oil was hit hard by those concerns, and may have contributed to dragging down the Norwegian Krone. Perhaps not entirely by coincidence, the petroleum-linked NOK was the session’s hardest-hit G10 currency. On the other hand, the sour mood spurred haven demand and pushed Treasuries and the US Dollar higher. The anti-risk Japanese Yen and Swiss Franc also rose.

This dynamic was further amplified by comments from Mr. Biden in a speech he gave on economic policy in Pennsylvania. He said that it is time to end “the era of shareholder capitalism”, adding that “Wall Street bankers and CEOs didn’t build America”. Such populist-leaning commentary may become more frequent as the November election approaches.

Friday’s Asia-Pacific Trading Session

With a relatively sparse data docket, traders will likely put an emphasis on macro-fundamental themes like Covid-19 medical metrics. An extension of the risk-off dynamic on Wall Street trade may hurt crude oil prices in the upcoming session along with commodity-linked currencies like AUD and NZD. The haven-linked US Dollar and anti-risk JPY and CHF may extend their gains along with Treasuries.

Crude Oil Analysis

Crude oil prices closed over 2.40 percent lower on Thursday, the worst one-day decline since June 24. Since breaking the March uptrend – gold parallel channel – Brent has traded sideways. A clear lack of a directional bias speaks to an underlying uncertainty not only in a technical sense but also fundamentally. Given the current circumstances, crude oil prices may continue to pull back in the upcoming session.

Crude Oil – Daily Chart

Chart showing crude oil

Crude oil chart created using TradingView

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.