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
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @charliebilello: The rate cuts starting in September 2007, January 2001, and June 1989 did not prevent recessions that started in Decemb…
  • Surprisingly, #Sterling speculative net shorts were largely unchanged, despite the currency surging over 5% to 1.28 during the reporting period. Get your market update from @JMcQueenFX here: https://t.co/t9pBLacdt2 $GBP https://t.co/mOF8xoE5e8
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.89% US 500: 0.50% France 40: 0.43% Wall Street: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VovlDOMwGF
  • UK Speaker John Bercow says there will be no meaningful vote today $GBP
  • Both $GBPUSD and Pound volatility remain stubbornly high https://t.co/HBjWhdNAvv
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 1.29% Gold: 0.15% Oil - US Crude: -1.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/6IB63JsLdO
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.05%, while traders in US 500 are at opposite extremes with 76.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/r9T6ryiYIf
  • RT @charliebilello: S&P 500 sales up 2.8% in the past year, slowest growth since Q3 2016. $SPX https://t.co/DOf4OnNhSb
  • I have to say - The American consumer seems very much alive and willing to spend! I took my little sister to Six Flags Great America outside Chicago over the weekend. I could not believe how packed it was; 45 minute line just to buy a ‘flash pass’ & 2hr wait per ride without it! https://t.co/jygedBYaD7
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.24% Gold: 0.04% Oil - US Crude: -1.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/VSivYkVziA
Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

2018-08-07 13:31:00
Justin McQueen, Analyst
Share:

Check out the brand new DailyFX trading forecasts for Q3

MARKET DEVELOPMENTS – CRUDE OIL PRICES SURGE ON SANCTION RENEWAL

US equities futures (DJIA +0.4%, Nasdaq 100 +0.2%, S&P 500 +0.2%) are trading in positive territory with risk sentiment cheering the rebound in Chinese equities overnight. Alongside this, a plethora of strong earnings from European companies have also buoyed equity markets.

Crude Oil: Oil prices are notably firmer following renewed sanctions on Iran, with Brent back above $74/bbl. The first round of sanctions took place at 1201EDT which are related to US Dollar banknotes, trade in precious metals and transactions involving the Iranian Rial and sovereign debt. The second round of sanctions will be imposed on Iran’s oil sales and energy sector on November. Ahead of this, buyers of crude will likely lower their imports in line with US guidance, as such, fears over supply loss will continue to underpin oil prices. Elsewhere, Saudi Arabia crude production saw an unexpected drop of around 200k in July, which has also added to the gains in crude.

TRY: The descent in the Turkish Lira has showed no signs of abating with the currency continuing to post a fresh record low on a daily basis. The latest move is due to the rising tensions between the US and Turkey. Alongside this, the inaction by the Turkish Central Bank has also sparked further selling in the Lira with many questioning the independence of the central bank. Given the rapid rise above the 5 handle in USDTRY a move towards 6 seems likely in the near term.

AUD: Outperforming in the G10 FX space is the Aussie amid a rebound in Chinese equities, consequently supporting high beta FX currencies. The Shanghai Composite closed higher by 2.7% with Chinese commodity prices notably firmer, as such, the Australian Dollar has made a firm breach above 0.74. Key resistance resides at 0.7480-0.75. Elsewhere, the RBA kept rates on hold at 1.50%, as expected, while they lower their expectations for inflation due to one off effects to take place in September.

DailyFX Economic Calendar: Tuesday, August 7, 2018 – North American Releases

Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

DailyFX Webinar Calendar: Tuesday, August 7, 2018

Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

IG Client Sentiment Index: AUDUSD Chart of the Day

Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

AUDUSD: Data shows 53.7% of traders are net-long with the ratio of traders long to short at 1.16 to 1. In fact, traders have remained net-long since Jun 05 when AUDUSD traded near 0.75575; price has moved 1.6% lower since then. The percentage of traders net-long is now its lowest since Jun 06 when AUDUSD traded near 0.76686. The number of traders net-long is 11.8% lower than yesterday and 11.2% lower from last week, while the number of traders net-short is 36.8% higher than yesterday and 21.9% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUDUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current AUDUSD price trend may soon reverse higher despite the fact traders remain net-long.

Crude Oil Prices Soar on Iranian Sanctions Renewal - US Market Open

Five Things Traders are Reading

  1. DXY Index Struggles to Achieve Topside Breakoutby Christopher Vecchio, CFA, Sr. Currency Strategist
  2. Market Sentiment Positive Despite Trade War Fears | Webinar" by Martin Essex, MSTA, Analyst and Editor
  3. Technical Analysis for Gold & Silver Price, Crude Oil, DAX & Moreby Paul Robinson, Market Analyst
  4. Gold Price Outlook: Rally Building with Downtrend Under Threatby Nick Cawley, Market Analyst
  5. Crude Oil Analysis: Oil Gains as US Reinstate Sanctions on Iran, What Next?” by Justin McQueen, Market Analyst

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.comFollow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.