WTI – Set for higher as market reprices supply tightness [Video]
![WTI – Set for higher as market reprices supply tightness [Video]](https://editorial.fxsstatic.com/images/i/Commodities_Oil-1.jpg)
Assymetic risk to reward to the upside in the play.
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Petar Jaćimović
FXCentrum
Petar Jaćimović was born on 8 July 1989 in Jagodina, Serbia.
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The now better tone in the Greenback weighs on the risk complex and sends GBP/USD to the area of three-day troughs around 1.3370. Indeed, Cable adds to Friday’s pullback and returns to the area below its 200-day SMA, leaving the door open to a deeper retracement in the near term.
EUR/USD fades the earlier bull run and faces renewed selling interest at the beginning of the week. That said, the pair builds on Friday’s losses and approaches the 1.1400 region in response to a decent rebound in the US Dollar.
Gold adds to recent weakness and trades closer to the key $4,000 mark per troy ounce in quite a negative start to the week. The yellow metal’s decline hot two-week lows on the back the solid performance of the US Dollar and steady uncertainty in the Middle East, all ahead of Tuesday's US CPI data and Fed Chair Warsh's testimony.
The cryptocurrency market broadly corrects on Monday, as risk-averse sentiment persists amid fresh military attacks between the US and Iran in the Middle East. Bitcoin hovers above $63,000, reinforcing a weak technical structure while Ethereum trades below $1,800 with the next key support near $1,700.
It’s a shaky start to the week for financial markets. The oil price has risen by nearly 4% and Brent crude is trading above $79 per barrel. This comes after more attacks between the US and Iran in the Gulf, and statements from the Iranian regime that it has closed the Strait of Hormuz.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.
