Oil prices heading towards fifth consecutive week of gains - BBH

Sandeep Kanihama FXStreet Contributor

Research Team at BBH, notes that the rally in oil prices is continuing and although oil prices are marginally extended yesterday's losses, it looks like the fifth consecutive week of gains.

Key Quotes

“The momentum is slowing. In the last week of September, prices rallied nearly 8.5%. In the first three weeks of October, the pace has been 3.25%, then 1.1% and this week 0.5%. Comments from various oil officials, from Saudi Arabia to Russia, Nigeria, and Iran, seem to have contributed to an increasingly cautious stance toward any output freezes or cuts. To lend credence to our sense that oil prices may be rolling over, the December light sweet contract needs to break below the $49.70 area, which is about a dollar lower from prevailing levels.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.