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
GBP/USD
Bullish
USD/JPY
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
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/l6FvtcADEH
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/dnrAMFK4U2
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/RMk5Eb5fLU
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
  • The Australian Dollar was focused on its home country in the past week, but that is likely to change sharply in the days ahead with major global risk events coming up. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/yZz3hCyVMx https://t.co/1xw1JHwd7l
  • The #Euro broke chart resistance, threatening to challenge the bounds of its longer -term downtrend against the $USD. Bulls may find it premature to celebrate however. Get your market update from @IlyaSpivak here: https://t.co/VfR13llYbW https://t.co/LiWTvIygxc
  • The $USD appears to be stalling against the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso, but technical analysis may still favor USD strength. Get your market update from @ddubrovskyFX here:https://t.co/AZp98MoXKo https://t.co/jgZMUFVGJB
  • The Indian Rupee soared after the Reserve Bank of India surprised with a rate hold. $USDINR may climb as support reinstates the uptrend ahead of Indian CPI and global trade tensions. Get your market update from @ddubrovskyFX here:https://t.co/QEOabsDfMn https://t.co/rqn8Zjrvkv
Crude Oil Prices Surge as Trump, Xi Meeting Looms Ahead

Crude Oil Prices Surge as Trump, Xi Meeting Looms Ahead

2017-04-05 04:21:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • Crude oil prices rise on Caribbean stockpile draw, API inventory drop
  • Pre-positioning for Trump/Xi meeting may help WTI continue to rise
  • FOMC minutes may act as catalyst for bearish gold price chart setup

Crude oil prices soared, benefiting from an assortment of supportive headlines. First, Bloomberg reported that the vast stockpiles stashed across islands in the Caribbean – a defining feature of the global supply glut plaguing markets in recent years – are finally starting to be drawn down. Then, API said that US inventories fell by 1.83 million barrels last week.

From here, official EIA inventory data is in focus. A small outflow of 70k barrels is expected. Prices are likely to build on recent gains if the outcome registers closer in line with API’s estimate. Pre-positioning ahead of Thursday’s meeting between US President Trump and his Chinese counterpart Xi Jinping may also be supportive.

China became the largest importer of US crude in February according to the latest figures on cross-border sales form the Census Bureau. If President Trump echoes the adversarial rhetoric he adopted as a candidate in his meeting with Xi, a rift in the two countries’ trading relationship may open. That may derail US oil sales to the world’s second-largest economy, reducing global supply.

Gold prices touched a five-week high as risk aversion pushed Treasury bonds upward and weighed on yields, boosting the relative appeal of non-interest-bearing assets. Gains were mostly erased by the end of the trading day however as US shares recovered from session lows to close fractionally higher, throwing risk-off dynamics into reverse.

The spotlight now turns to minutes from the March FOMC meeting. The yellow metal may turn lower if the document suggests that most central bank officials’ forecast for the 2017 rate hike path does not take into account the would-be impact of inflationary fiscal policy. If the case for tightening looks independent of Trump administration’s ability to fulfil campaign promises, the markets’ outlook may turn more hawkish.

What will drive crude oil and gold prices in the next 3 months? See our forecasts and find out!

GOLD TECHNICAL ANALYSISGold prices put in a Shooting Star candlestick below pivotal resistance at 1263.87 (February swing high, trend line), hinting a move lower may be brewing ahead. Negative RSI divergence bolsters the case for a downside scenario. A daily close below the 14.6% Fibonacci expansion at 1236.83 opens the door for a test of the 23.6% level at 1220.17.

Crude Oil Prices Surge as Trump, Xi Meeting Looms Ahead

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices overturned bearish reversal cues noted yesterday, pushing to the highest level in nearly three months. From here, a daily close above the 38.2% Fibonacci expansion at 52.04 exposes the 50% level at 53.57. Alternatively, a reversal back below the 23.6% Fib at 50.14 – now activing as support – paves the way for a retest of the 14.6% expansion at 48.98.

Crude Oil Prices Surge as Trump, Xi Meeting Looms Ahead

Chart created using TradingView

--- 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.