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
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
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
Bitcoin
Bullish
More View more
Real Time News
  • RT @IGSquawk: We're currently pricing #GBPUSD at 1.2852 and #FTSE at 7129.2 That's a drop of 1.18% from Fridays close for GBPUSD and 0.22%…
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/K6W9X4v8XD
  • The $NZD may be carving out a near-term bottom against its US counterpart but scope for gains seems limited within a broader downtrend. Get your technical analysis from @IlyaSpivak here: https://t.co/7bsVuSyWMn https://t.co/DsmNYKk8v3
  • Can you trade with the joy of missing out (#JOMO)? Find out how you can turn your #FOMOintrading to JOMO here: https://t.co/G5H26NXZQe https://t.co/pVdKUPzvmk
  • RT @PaulBrandITV: It’s likely that this will end up in court on Monday. The case in the Scottish courts may well consider that this doesn’t…
  • RT @PaulBrandITV: BREAKING: Tonight the PM has sent this letter to EU requesting an extension to Brexit. Wording is copied and pasted from…
  • RT @FactSet: $SPX is reporting a (Y/Y) decline in earnings of -4.7% for Q3 2019, which would mark the 3rd straight quarter of (Y/Y) earning…
  • RT @MehreenKhn: 🔔🔔 Here is the letter Boris Johnson has sent to Brussels tonight saying an extension would "damage" interests of the EU and…
  • What is #forex time frames and how can it be applied to multi-time frame analysis. Find out here: https://t.co/uEmAGW4ckP https://t.co/f4RrjSQK8y
  • Thread on #Brexit latest ⬇️ https://t.co/Sbgh6614Mc
Crude Oil Prices Drop as Yellen Comments Outweigh OPEC Optimism

Crude Oil Prices Drop as Yellen Comments Outweigh OPEC Optimism

2016-11-18 09:16:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • Gold price drop gains momentum after hawkish Yellen comments
  • Crude oil prices erase OPEC-inspired gains as US Dollar surges
  • OPEC headline risk, rig count figures in focus into the week-end

Gold prices accelerated downward once again after hawkish comments from Fed Chair Janet Yellen inspired another hawkish shift in the priced-in monetary policy outlook (as expected). The priced-in probability of a rate hike in December now stands at a potent 96 percent and the projected 2017 tightening path is at its steepest in eight months. Not surprisingly, this has undermined demand for anti-fiat and non-interest-bearing assets, punishing precious metals.

Crude oil was unable to escape Yellen-inspired volatility. Prices were on the upswing after Saudi oil minister Khalid al-Falih said he was optimistic about finalizing a deal to cut output agreed to by OPEC members in September. Cartel members are trying to iron out implementation details and cajole Russia – a pivotal non-OPEC producer – into joining the effort before a formal meeting on November 30. The USD-denominated WTI benchmark succumbed to de-facto selling pressure as the greenback soared however, erasing gains to finish the day with a loss.

A lull in high-profile event risk leaves commodities vulnerable as established momentum finds few roadblocks to disrupt continuation. OPEC-related headline risk remains an important consideration however as officials continue to haggle in Doha. An unexpected breakthrough or a decisive breakdown in the negotiations is likely to inspire a response from oil prices and may echo into broader sentiment trends. The Baker Hughes Rig Count measure is also due to cross the wires. The number of active drilling sites fell for the first time since mid-September last week.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

GOLD TECHNICAL ANALYSISGold prices have dropped to the weakest level in almost six months, challenging the $1200/oz figure. A daily close below the May 30 low at 1199.55 exposes the 123.6% Fibonacci expansion at 1171.83. Alternatively, a turn back above the 76.4% level at 1234.97 paves the way for a retest of the 61.8% Fib at 1254.50.

Crude Oil Prices Drop as Yellen Comments Outweigh OPEC Optimism

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are struggling to maintain momentum after launching higher from support near the $43/bbl figure. Near-term resistance remains at 45.90, the 38.2% Fibonacci retracement, with a daily close above that opening the door for a test of the 50% level at 47.05. Alternatively, a turn below triple bottom support at 43.02 targets the August 11 low at 41.08.

Crude Oil Prices Drop as Yellen Comments Outweigh OPEC Optimism

--- 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.