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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
Crude Oil Slips On Worries G7 Coronavirus Response Will Underwhelm

Crude Oil Slips On Worries G7 Coronavirus Response Will Underwhelm

David Cottle, Analyst

Crude Oil and Gold Talking Points:

  • Crude oil prices made early gains but slipped back
  • The prospect of lower world interest rates still underpins all such risk correlated assets
  • Gold prices held up, supported as usual by lower bond yields

Crude oil prices failed to hold on to early gains Tuesday as the spread of coronavirus continues to dominate all financial market action.

Growth-sensitive assets such as crude have generally picked up this week, despite widespread new infections worldwide, as investors look hopefully to the world’s monetary and fiscal authorities for remedial support. These hopes bore early fruit Tuesday with an interest rate cut from the Reserve Bank of Australia. Its base rate is are now 0.5%, a new record low. Moreover the European Central Bank proclaimed itself ready to act if needed, with other major monetary authorities expected to do the same.

However, risk appetite hit a hurdle later in the session when Reuters reported that a statement on virus response in preparation by the Group of Seven advanced industrial democracies doesn’t include specific commitments to either fiscal or monetary action. The news service reported that while finance leaders will work together to mitigate economic damage, the ultimate statement remains under discussion.

Still, the energy market remains very hopeful that this week’s Vienna meeting of the Organization of Petroleum Exporting Countries and allies including Russia will see production cuts both deepened and lengthened significantly.

Gold prices gained with the prospect of lower global interest rates for longer burnished the metal’s appeal.

As a non-yielding asset gold has a strong tendency to gain when the yields of competitors such as bonds are forecast to be held down by central bank action.

There’s very little on the day’s scheduled economic data slate likely to tear market attention away from the coronavirus and the political response to it. Eurozone Consumer Price Index figures are coming up, with a modest deceleration expected in the annualized rate.

Crude Oil Technical Analysis

Crude Oil Prices, Daily Chart

Growing hopes for that production cut haven’t seen the overall daily-chart downward channel threatened at all at this point. However, prices bounced last week at lows not seen since December 2018 and are now constrained by a support band from the following month. The market isn’t likely to stray very far from current levels until investors know what OPEC has in mind.

Substantial production cuts might well see the psychologically important $50/barrel mark regained but, with speculation already centered around reductions of around a million barrels per day, the meeting may struggle to beat expectations.

Gold Technical Analysis

Gold Prices, Daily Chart

Gold prices are flirting with the top of their current daily-chart trading range. They topped it on an intraday basis Monday and have done so again in Tuesday’s Asian session but a daily close above it so far eludes the bulls.

On the fundamental side, further confirmation that monetary policy will be loosened around the world is likely to see gold extend its gains, but the market is clearly nervous about a return to the eight-year highs of late February even though support looks strong above the $1568/ounce level.

Commodity Trading Resources

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES