Crude Oil Futures: Fears of a second wave linger – Charles Schwab

FXStreet Team FXStreet

Crude Oil Futures are up for a fourth consecutive week. Higher prices tempt producers but demand uncertainty lingers, David Chambers from Charles Schwab reports.

Key quotes

“Reopening economies around the world will likely prove very difficult, so the volatility in oil prices may be far from over. Fears of a second wave linger.”

“If oil prices continue to stabilize, producers in the U.S. and OPEC+ may find it difficult to avoid the temptation of re-opening the spigots. Global oil shipping rates have been ticking down which may hint at a moderation in the supply glut.”

“Thursday’s RSI above 70 may have hinted at overbought conditions, confirmed by Friday morning’s selloff which brought the RSI reading down to near 50.”

Author

FXStreet Team

FXStreet

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.