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.

Free Trading Guides
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
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Dialing back, the low last month was created around a very, very long-term trend-line extending up since 1982. Get your #DAX market update from @PaulRobinsonFX here: https://t.co/Vaf1KXghqe https://t.co/TUwVPvuQkw
  • Trump: Can do phase 4 stimulus bill "later", sees understanding with Democrats on loan program funding. Calling on Congress to pass loan program funding this week -BBG
  • US President Donald Trump: Could reopen country in phases, may be ahead of schedule. Have to be on downside of slope to reopen the economy -BBG
  • USD/CAD Trading Forecast - via @DailyFX: Canadian Dollar Eyes Jobs Data, Oil & OPEC+ Link to Analysis: https://www.dailyfx.com/forex/technical/home/analysis/usd-cad/2020/04/08/usdcad-forecast-canadian-dollar-eyes-jobs-data-oil-opec.html $USDCAD $CL_F #WTI #OOTT #Forex #FX https://t.co/mSrFIcdSs9
  • Fed's Kaplan: -Sees US unemployment rate rising above 10% to 'mid teens' but fall between 7-8% by year end -US GDP may plunge 25-35% in 2Q, shrink 4-5% on balance this year
  • RT @LiveSquawk: Fed's Kaplan: US GDP May Shrink 25% To 35% In Second Quarter, Then Grow In Second Half - RTRS - Sees US GDP Shrinking 4% T…
  • For Thursday's trading session we have: the RBA Financial Stability Review; UK GDP; Canadian employment; US consumer confidence (UMich for April) and the OPEC+ meeting. High profile event risk overriding liquidity fade into Good Friday?
  • $EURUSD Daily Pivot Points: S3: 1.0647 S2: 1.0762 S1: 1.0827 R1: 1.0941 R2: 1.0991 R3: 1.1106 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #Gold prices rallied by more than 7.7% from the April 1st low into yesterday’s. high. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/M9QeP4a5QH https://t.co/xc847ElRxe
  • RT @hmeisler: RUT green 3 straight. Hasn't gone 4 since early Feb.
Crude Oil Prices Drop on Fading Hopes for OPEC Output Freeze

Crude Oil Prices Drop on Fading Hopes for OPEC Output Freeze

2016-06-01 04:18:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices snap nine-day losing streak, hint at rebound in the works
  • Crude oil prices target key trend line after largest drop in three weeks
  • May ISM Manufacturing data, Fed Beige Book in the spotlight ahead

Gold prices turned higher against a backdrop of cooling Fed rate hike speculation. The yellow metal rose as front-end US bond yields fell and year-end tightening expectations implied in Fed Funds futures moderated. The move played after PCE inflation data put the core price growth rate at 1.6 percent – in line with expectations and thereby offering nothing to propel bets on near-term stimulus withdrawal – while a measure of US consumer confidence unexpectedly declined.

Meanwhile, crude oil prices sank after UAE Oil Minister Suhail Mohammed Al Mazrouei said the market will “fix itself to a fair price for consumers and producers”, adding that the rules of supply and demand are working. The remarks pour cold water on the probability that OPEC will agree to an output freeze to buoy prices. Iraqi Oil Minister Adil Abdul-Mahdi suggested that such a policy will be discussed at the sit-down starting in Vienna on June 2.

Looking ahead, a busy day on the US data docket will continue to feed volatility in the Fed policy outlook. The ISM Manufacturing report and the central bank’s Beige Book survey of regional economic conditions take top billing. Upbeat results may stymie gold’s nascent recovery while downbeat outcomes are likely to prove supportive. The numbers’ US Dollar impact may translate into crude oil volatility as well considering prices are denominated in terms of the benchmark currency. OPEC-related headlines and the API set of weekly inventory numbers are also noteworthy.

What does retail traders’ gold positioning hint about the price trend? Find out here!

GOLD TECHNICAL ANALYSISGold prices may be preparing to rebound after breaking a nine-day losing streak and putting in a Bullish Engulfing candlestick pattern. A daily close above the 23.6% Fibonacci expansion at 1241.96 exposes support-turned-resistance at 1262.60. Alternatively, a move below the 38.2% level at 1203.82 targets the 50% Fib at 1172.99.

Crude Oil Prices Drop on Fading Hopes for OPEC Output Freeze

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are attempting to accelerate downward as expected, putting in the largest daily drawdown in three weeks. A break below support at the 48.00 figure, marked by the intersection of a rising trend line and the 14.6% Fibonacci retracement, exposes the 23.6% level at 46.65. Alternatively, push above the 61.8% Fib expansion at 50.13 targets the 76.4% threshold at 51.82.

Crude Oil Prices Drop on Fading Hopes for OPEC Output Freeze

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES

News & Analysis at your fingertips.