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.

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
Subscribe
Please try again
EUR/USD
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
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
Bearish
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/F4dXbUzU3o https://t.co/G0ZWWVtSrZ
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/5js6tWk5bY
  • The Euro has regained lost ground against its major counterparts recently. Are further gains in the offing or is this just a short-term countertrend correction? EUR/USD, EUR/JPY, EUR/GBP, EUR/NZD key levels. Get your market update from @DanielGMoss here:https://t.co/Z71MZEIJWC https://t.co/YAr1kN4eKd
  • Coinbase’s impending initial public offering could provide the necessary fuel for Bitcoin to push to fresh record highs in the coming days. Get your market update from @DanielGMoss here:https://t.co/twdu0zqmIM https://t.co/72HRMZlKUn
  • The Swiss Franc has positioned itself against key levels versus the Australian Dollar, New Zealand Dollar and Euro over the past week. Where next for AUD/CHF, NZD/CHF and EUR/CHF? Find out from @FxWestwater here:https://t.co/CrtQGzvWnm https://t.co/j5Zjn5zY0D
Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Ilya Spivak, Head Strategist, APAC

Talking Points

  • Crude Oil, Copper Aim Higher as Improving US Data Boosts Demand Outlook
  • Gold, Silver Look to US Inflation Report as QE3 Expectations Remain in Focus

Crude oil prices rose to the highest in over a month yesterday after a broadly supportive set of US economic data bolstered the demand outlook in the world’s largest consumer. Geopolitical jitters continued to compound upward pressure after Iran claimed a “major” breakthrough in its nuclear program after 3,000 next-generation centrifuges were allegedly installed at its main enrichment site in Natanz. The US State Department dismissed the news as “hype” for the domestic audience.

While the war of words between Tehran and Western powers continues, there seem to be signs of a stealth effort toward accommodation in the works. As we noted yesterday, reports indicate Iran cancelled military exercises in the Strait of Hormuz set for this weekend, which is can be interpreted as a conciliatory measure. This could open the door for the geopolitical premium to begin making its way out of crude prices, but a clear bearing on this front will not be had until the weekend passes and the cancellation rumors are confirmed.

In the meantime, the US economic calendar is in focus. The composite Leading Indicators gauge is expected to print at the highest since July 2008 today, which promises to encourage demand expectations higher and keep prices well supported. Copper may likewise see upside momentum as stronger US data underpins the outlook for the world’s second-largest importer of the cycle-sensitive base metal. Gold and silver will be focused on the US Consumer Price Index report as inflation expectations remain in the spotlight. Core inflation is expected to hold unchanged at an annual rate of 2.2 percent in January, which ought to prove net-neutral for QE3 expectations and may yield a muted end to the trading week.

WTI Crude Oil (NY Close): $102.31 // +0.51 // +0.50%

Prices continued higher after breaking through resistance at 101.28, with the bulls pushing onward to challenge the mid-November swing top at 103.35. A break above that barrier targets 105.54. The 101.28 level has been recast as near-term support.

Crude_Oil_Aims_Higher_on_Improving_Demand_Bets_Gold_Eyes_US_CPI_body_Picture_3.png, Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Gold (NY Close): $1728.07 // -0.07 // -0.00%

The would-be Head and Shoulders setup hinted over recent days is starting to look unlikely as the right side of the formation becomes a bit too overextended. A Descending Triangle set from the February 3 high now looks like a more likely setup. The pattern also calls for losses, although like the H&S a close below support at 1714.05 is needed for confirmation. If that materializes, the bears will open the door for a test of 1677.05. Triangle resistance is now at 1730.33, with a break higher targeting 1763.00.

Crude_Oil_Aims_Higher_on_Improving_Demand_Bets_Gold_Eyes_US_CPI_body_Picture_4.png, Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Silver (NY Close): $33.50 // +0.05 // +0.14%

Prices put in a bullish Dragonfly Doji candlestick above support at 32.54, the 23.6% Fibonacci retracement level, hinting a bounce may be ahead. Initial resistance lines up at 34.51, the February 8 swing high, with a break above that exposing 35.30. The gold/silver ratio continues to show a meaningful inverse relationship with stock prices, meaning the cheaper metal is likely to underperform in a risk-off scenario (and vice versa).

Crude_Oil_Aims_Higher_on_Improving_Demand_Bets_Gold_Eyes_US_CPI_body_Picture_5.png, Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Daily Chart - Created Using FXCM Marketscope 2.0

COMEX E-Mini Copper (NY Close): $3.790 // -0.012 // -0.32%

Prices put in a Dragonfly Doji candlestick above support at 3.738, the 23.6% Fibonacci retracement level, suggesting a corrective upswing is ahead. Initial resistance lines up at 3.834, the 14.6% Fib level, with a break above that exposing the January 27 high at 3.938.

Crude_Oil_Aims_Higher_on_Improving_Demand_Bets_Gold_Eyes_US_CPI_body_Picture_6.png, Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

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

DISCLOSURES