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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇬🇧 Nationwide Housing Prices YoY (NOV) due at 07:00 GMT (15min) Expected: 5.4% Previous: 5.8% https://www.dailyfx.com/economic-calendar#2020-11-27
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/dRmLKUEaAM
  • 🇫🇮 GDP Growth Rate YoY Final (Q3) Actual: -2.7% Previous: -6.2% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3% Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3 Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3 Previous: -4.5% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate YoY Final (Q3) Actual: -2.7 Previous: -6.4% https://www.dailyfx.com/economic-calendar#2020-11-27
  • Heads Up:🇫🇮 GDP Growth Rate QoQ Final (Q3) due at 06:00 GMT (15min) Previous: -4.5% https://www.dailyfx.com/economic-calendar#2020-11-27
  • Heads Up:🇫🇮 GDP Growth Rate YoY Final (Q3) due at 06:00 GMT (15min) Previous: -6.4% https://www.dailyfx.com/economic-calendar#2020-11-27
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.09%, while traders in NZD/USD are at opposite extremes with 73.48%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/b4kJ0Qob1K
Crude Oil Prices May Rise on US Stimulus Hopes, PMI Data

Crude Oil Prices May Rise on US Stimulus Hopes, PMI Data

2020-10-23 05:03:00
Ilya Spivak, Head Strategist, APAC
Share:

CRUDE OIL & GOLD TALKING POINTS:

  • Crude oil prices edge up on US fiscal stimulus hopes, upbeat data flow
  • Soundbites from Washington DC, US PMI surveys now in the spotlight
  • Gold prices down as US Dollar gains alongside Treasury bond yields
Advertisement

Crude oil prices managed to retrace some lost ground Thursday after the prior day’s selloff, the largest one-day loss in over a week, as an improvement in market-wide risk appetite helped buoy sentiment-geared assets. Tellingly, the WTI benchmark tracked higher alongside bellwether S&P 500 futures.

Markets seemed to be cheered by the appearance of a positive turn in US fiscal stimulus negotiations after House Speaker Nancy Pelosi said a deal is “just about there”. Data flow was also supportive: existing home sales surged to a 14-year high while jobless claims registered lower than expected.

Gold prices fell as the chipper mood buoyed Treasury bond yields, tarnishing the appeal of non-interest-bearing alternatives. Interestingly, the US Dollar managed to shed the anti-risk trading profile defining recent price action and rose in tandem, hinting the day’s new-flow may have curbed Fed easing bets.

CRUDE OIL, GOLD PRICES EYE US FISCAL STIMULUS AND PMI DATA

Soundbites shaping fiscal stimulus expectations are likely to remain in focus through the end of the trading week. Flash US PMI surveys headline the data docket, with forecasts pointing to a slight pickup in the overall pace of economic activity growth in October compared with the prior month.

A brighter view of the near-term business cycle might keep crude oil prices supported in the near term. A lasting rally seems unlikely however as weak demand continues to weigh. In fact, an EIA implied demand gauge published this week slumped toward Covid outbreak lows registered in April.

Gold may continue to suffer if yesterday’s trade dynamics remain in play, with hopes for a strengthening recovery boosting yields alongside the Greenback. However, disappointing data flow or souring stimulus prospects in the face of opposition in the Republican-controlled Senate might buoy the yellow metal.

Oil Forecast
Oil Forecast
Recommended by Ilya Spivak
Get Your Free Oil Forecast
Get My Guide

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are hovering just below range resistance in the 42.40-43.88 area. A downswing from here sees initial support in the 34.64-36.15 zone, with a break below that likely exposing the 27.40-30.73 region next. Alternatively, a daily close above resistance may open the door for a test of the $50/bbl figure.

Crude Oil Prices May Rise on US Stimulus Hopes, PMI Data

Crude oil price chart created using TradingView

GOLD TECHNICAL ANALYSIS

Gold prices recoiled from resistance in the 1911.44-28.82 area, marked by a former range bottom and a falling trend line set from mid-August. Support is eyed in the 1848.66-63.27 zone, with a daily close below that seemingly setting the stage for a move below the $1800/oz figure. Alternatively, claiming a foothold above resistance may be followed by another test above $2000/oz.

Crude Oil Prices May Rise on US Stimulus Hopes, PMI Data

Gold price chart created using TradingView

Gold Forecast
Gold Forecast
Recommended by Ilya Spivak
Get Your Free Gold Forecast
Get My Guide

COMMODITY TRADING RESOURCES

--- Written by Ilya Spivak, Head APAC Strategist for DailyFX

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES