Oil prices have generally tracked risk appetite so far this week, dropping sharply on Monday before recovering over the last three days. Today’s rally has been supercharged by escalating geopolitical tensions in the Middle East; when asked whether the US would go to war with Iran, the President stated “I hope not.” The latest comments come on the heels of last week’s news that the White House was positioning aircraft carriers in the region and has drawn up plans to deploy more than 100k US troops to the Middle East if necessary.

From a fundamental perspective, oil prices are delicately balanced between competing forces: geopolitical risks in Iran and Venezuela are boosting prices on concerns of a supply shock, while the ongoing US-China trade tensions and potential for OPEC to increase production are keeping bulls on their toes.

Technically speaking, US oil prices peeked out to a two-week high above 63.00 this morning before pulling back as of writing. So far, WTI has only seen a shallow 23.6% Fibonacci retracement of its 2019 rally, suggesting that the medium-term momentum remains with the bulls for now:

This research is for informational purposes and should not be construed as personal advice. Trading any financial market involves risk. Trading on leverage involves risk of losses greater than deposits.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD recovery reaches critical 1.1170 price zone

The EUR/USD pair bounced from a fresh multi-year low of 1.1106, although the advance stalled in the 1.1170 region, with the pair having been unable to extend gains beyond it since last Friday. Bulls to become more courageous if the advance extends beyond 1.1200.

EUR/USD News

GBP/USD modestly up for the day after flirting with 1.2600

The GBP/USD pair is poised to close in positive ground for the first time in ten days, a result of an extremely overbought dollar and US data giving bulls a reason to take some profits out of the table. Brexit chaos persists, Pound gains unlikely.

GBP/USD News

USD/JPY slumps to mid-109s as 10-year US T-bond yield drops 4% today

The bearish pressure surrounding the USD/JPY pair gathered strength in the American trading hours and dragged the USD/JPY pair to a weekly low of 109.50.

USD/JPY News

Market confidence in doldrums as PMI surveys plummet

US and German PMI surveys failed to muster any form of confidence in the growth picture, with stocks and the dollar under pressure today. The UK political picture looks bleak, with the chances of a no-deal Brexit or general election rising with May’s departure. 

Read more

Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood

Gold built on its intraday positive move and spiked to fresh weekly tops, around the $1284 region in the last hour, albeit retreated a bit thereafter.

Gold News

Majors

Cryptocurrencies

Signatures