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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
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
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/b9XwwYS9uJ https://t.co/8OIZVJnaD6
  • A #Euro reversal off technical downtrend resistance now risks a larger correction in price. Here are the levels that matter on the $EURUSD weekly chart. Get your #currencies update from @MBForex here: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/31/Euro-Technical-Outlook-EURUSD-Breakdown-Aims-For-Multi-month-Lows.html?QPID=30472&CHID=9 https://t.co/iVhmCXi9EG
  • We are days away from the US Presidential election and the markets are caught in the vortex. A contested outcome would raise serious volatility for the markets whereas a decisive outcome seems to support bullish $SPX and Dollar views from the market rank. https://www.dailyfx.com/forex/video/daily_news_report/2020/10/31/SP-500-and-Dollar-Forecast-Leads-Global-Markets-with-Elections-Expectations-.html https://t.co/JnJbyu6TRT
  • The future implications of the #Elections2020 may influence $AUDUSD following the #RBA and #Fed rate decisions as Congress struggles to pass another round of fiscal stimulus. Get your #currencies update from @DavidJSong here: https://t.co/soPu0Wefz2 https://t.co/UWsERr2AYh
  • Gold prices declined in the aftermath of bearish technical cues, but a key zone of support was reinforced. $XAUUSD volatility risk is elevated ahead of the #Elections2020. Get your #metals update from @ddubrovskyFX here: https://t.co/gWOxdqk8OL https://t.co/gBMgF0YNjH
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here: https://t.co/fndMQJLul8 https://t.co/elz5gNAKrB
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/7EzMPg9Kqg
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
US AM Digest: Oil Price Rises to 4-Year Peak Ahead of Iran Nuclear Deal Deadline

US AM Digest: Oil Price Rises to 4-Year Peak Ahead of Iran Nuclear Deal Deadline

2018-05-07 13:29:00
Justin McQueen, Analyst
Share:

Receive the DailyFX US AM Digest in your inbox every day before US equity markets open - signup here

US Market Snapshot via IG: DJIA +0.4%, Nasdaq 100 +0.5%, S&P 500 +0.3%

Major Headlines

  • Oil prices surge to 4-year highs with WTI and Brent above $70 and $75/barrel respectively
  • German Industrial Orders post surprise drop in March
  • Bank of Japan Minutes reiterate that the BoJ should maintain current policy amid distant inflation target
  • UK Participants away for Bank Holiday

USD: Buying in the USD has resumed this morning after a slight stall on Friday, post mixed US Jobs report. DXY saw a break above Friday’s high and now looks to extend a move towards the December high of 94.22. Buying interest in the greenback has largely been attributed to the selling in EUR, which posted fresh YTD lows, briefly dipping below 1.1900.

EUR: No rest for the selling pressure in the Euro, the latest CFTC data on Friday showed that net-long speculators continued to head for the exit amid the fears of deteriorating growth in the Euro-Area. However, net-long positioning is still at elevated levels, providing more risk of further selling in the Euro. This morning saw the release of German industrial orders, which surprising fell in March, consequently adding to the continuous run of poor German data, while Eurozone Sentix Investor Confidence fell to the lowest level since Feb’17.

Oil: WTI and Brent crude futures have begun the weak on the front foot with prices rising over 1% to move above $70 and $75/barrel respectively ahead of the May 12th deadline on whether the US will waiver sanctions on Iran. The increasing geopolitical concern over whether the US will pull out of the Iranian nuclear deal has kept prices afloat, alongside this, weekend reports from Saudi Arabia stated that they prefer oil prices around $80-$85, which has also painted a rosier picture for oil bulls.

DailyFX Economic Calendar: Monday, May 7, 2018 – North American Releases

US AM Digest: Oil Price Rises to 4-Year Peak Ahead of Iran Nuclear Deal Deadline

DailyFX Webinar Calendar: Monday, May 7, 2018

US AM Digest: Oil Price Rises to 4-Year Peak Ahead of Iran Nuclear Deal Deadline

IG Client Sentiment Index: Oil Chart of the Day

US AM Digest: Oil Price Rises to 4-Year Peak Ahead of Iran Nuclear Deal Deadline

Oil - US Crude: Data shows 34.9% of traders are net-long with the ratio of traders short to long at 1.87 to 1. In fact, traders have remained net-short since Apr 09 when Oil - US Crude traded near 6366.0; price has moved 9.5% higher since then. The number of traders net-long is 8.1% lower than yesterday and 17.4% lower from last week, while the number of traders net-short is 3.8% higher than yesterday and 11.9% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Oil - US Crude prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Oil - US Crude-bullish contrarian trading bias.

Four Things Traders are Reading

  1. CoT Update – Euro Speculative Long Shrinking, but Plenty More to Sellby Paul Robinson, Market Analyst
  2. EUR/USD Weekly Technical Forecast: Fresh YTD Lows Keeps Lasting Bearish Trend Intact” by Justin McQueen, Market Analyst
  3. Eurozone Investor Confidence Falls to February 2017 Low on Trade War Fears” by Justin McQueen, Market Analyst
  4. Bitcoin, Ripple & Ethereum Charts at a Glance” by Paul Robinson, Market Analyst

The DailyFX US AM Digest is published every day before the US cash equity open - you can SIGNUP HERE to receive this report in your inbox every day.

The DailyFX Asia AM Digest is published every day before the Tokyo cash equity open - you can SIGNUP HERE to receive that report in your inbox every day.

If you're interested in receiving both reports each day, you can SIGNUP HERE.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES