Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Crude Oil Bumps Up as US Dollar Sinks on Yield Slip Ahead of Quad Meetings in Tokyo

Crude Oil Bumps Up as US Dollar Sinks on Yield Slip Ahead of Quad Meetings in Tokyo

Daniel McCarthy, Strategist


Crude Oil, US Dollar, USD, DXY Index, Quad Meeting, AUD, NZD - Talking Points

  • Oil is a touch higher after USD softened with aTreasury yield dip on Friday
  • APAC equities moved higher but were cut down by more Covid-19 cases in China
  • Risk and growth linked currencies rallied today. Will USD pick up steam again?

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Crude oil and gold are both up around 0.5% due to the US Dollar softening to start the week, as has the Euro. Backwardation in WTI oil futures has had a notable pick up and markets will be watching for any upward price pressures.

The US dollar lost ground today after US Treasury yields leaked lower going into the end of last week. They have picked up a few basis points across the curve so far today. The benchmark 10-year bond is near 2.82% at the time of going to print.

US President Joe Biden is visiting Japan for the first time to attend the Quad meeting. The Quad meetings bring together the leaders of Australia, India, Japan and the US.

Australia’s new Prime Minister, Anthony Albanese, will be heading to Tokyo after his Labor party won the Australian election over the weekend.

Over the weekend, India announced a raft of measures to try to alleviate inflationary and supply chain problems, including cuts to fuel taxes and import duties.

The Asian session opened with a strong risk on bias with equities soaring along with the Aussie and Kiwi. APAC indices have given up their early gains, but Wall Street futures are pointing to a healthy uptick for their opening.

Asian markets were rattled by a record number of Covid-19 cases, stoking fears of further increases in restrictions.

There are a number of speakers from ECB, BoE and the Fed that will have commentary crossing the wires today.

The full economic calendar can be viewed here.

How to Trade Oil
How to Trade Oil
Recommended by Daniel McCarthy
How to Trade Oil
Get My Guide

DXY (USD) INDEX Technical Analysis

After making a 20-year high earlier this month, the DXY index has stalled and appears to be heading lower to test potential support at a previous low of 102.35.

This move lower has seen it cross below the 10-day simple moving average (SMA) which may suggest bullish momentum could be fading. Short term bearish momentum might be unfolding.

The 10-day SMA could offer resistance as well as the recent peak of 105.01.


Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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