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
EUR/USD
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
Oil - US Crude
Bullish
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
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
  • GBP/USD on the front foot to close the week. Bulls aim for YTD peak, while EUR/GBP range is maintained. Get your market update from @JMcQueenFX here: https://t.co/neGBchlJ0O https://t.co/KME51FSF0D
Crude Oil Price Crumbles on Trump Call to OPEC Despite US GDP Beat

Crude Oil Price Crumbles on Trump Call to OPEC Despite US GDP Beat

Rich Dvorak, Analyst

CRUDE OIL PRICE – TALKING POINTS:

  • Crude oil took a nosedive to an intraday low of $62.27/bbl in response to news that President Trump is turning up the heat on OPEC to increase oil supply in hopes of driving prices lower
  • The Q1 US GDP report could also be contributing to crude oil price action today seeing that underlying details of the data release painted a mixed picture for economic growth despite the headline number beating expectations by a full percentage point
  • Take a look at this article on How to Trade Crude Oil or check out these Top Crude Oil Facts to expand your trading knowledge
  • Download the DailyFX Q2 Oil Forecast for our comprehensive outlook

Crude oil tanked over 3 percent to its lowest level since April 5 amid renewed criticism from US President Trump over OPEC and global oil supply. Trump’s latest jab at the largest group of oil producing countries is not is his first attempt to put pressure on the petroleum cartel to raise crude output. In fact, Trump’s oil tweet a month ago also sent prices swinging lower when he said it is “very important that OPEC increase the flow of oil.”

CRUDE OIL PRICE CHART: 5-MINUTE TIME FRAME (APRIL 26, 2019 INTRADAY)

Crude Oil Price Chart After US GDP Report and Trump OPEC Call

Prior to today’s slide lower, markets witnessed a 55 percent surge in oil since the start of the year. The move higher was primarily driven by pledges from OPEC to cut oil production and restore supply and demand imbalances in response to slowing global growth.

Turmoil in Libya and Venezuela as well as the expiration of exemptions to Iranian sanctions have all likely exacerbated the move higher in oil prices. Now, fears are starting to build that the steep ascent in oil prices over the last 4 months could begin to drag economic growth lower. This could be the result of higher oil prices translating into rising input costs on firms and eventually consumers.

The dramatic move in oil today is a bit surprising on the surface, however, considering the massive US Q1 GDP beat. The US economy expanded 3.2 percent in the first quarter which blew past Bloomberg’s median consensus of 2.2 percent. Initially, one might expect the news of higher economic growth to boost the case for rebounding global GDP, leading to a similar rise in demand for oil and thus oil prices.

Although, when ‘looking under the hood’ of the US GDP report, the details appear to be bleaker than the 3.2 percent headline number reported. The better than expected US GDP number was largely driven by a hefty build in inventories, a reduction in imports in addition to higher state and local government outlays – components that generally do not warrant a celebration.

This is also indicated by the lack of conviction in the equity markets and skepticism in the bond markets with the S&P500 only up a mere 0.3 percent after opening up in the red and the US10YR Treasury yield dropping to 2.5 percent.

If markets remain unconvinced that economic fundamentals are turning higher – which appears to only be occurring in the United States while the rest of the world continues to struggle – resurfacing global growth slowdown fears could drag oil prices lower. Furthermore, the downside risk of another Trump tweet at OPEC always remains a possibility.

TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter

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

DISCLOSURES