WTI clings to $55.00 amid receding geopolitical tension, trade positive news


  • WTI sellers catch a breath as positive signals for the US-China trade relation question the latest downpour.
  • Expected change in the UK-Iran geopolitical concerns and fears of global recession limit recovery.

While trade positive news stops WTI declines for now, the expected recovery in the UK-Iran relations and doubts over the strength of global economy keep prices in check while portraying $55.00 during early Thursday morning in Asia.

The energy buyers earlier cheered the South China Morning Post (SCMP) news that Beijing sees a positive signal in the US President Donald Trump’s latest delay of tariffs on some of the Chinese goods. Adding to the optimism was the President Donald Trump’s tweets that took a U-turn from previous warning that China should stay away from Hong Kong crisis.

On the contrary, inversion of the US 10-year and two-year Treasury yields renewed the fear of 2008 financial crisis and tamed Oil demand. Also exerting the downside pressure is the UK’s expected decision to release Iranian oil tanker on Thursday, which in turn can improve relations between the nations that have recently been at loggerheads.

Further on the bearish side is the latest Crude Oil Stocks Change report from the Energy Information Administration (EIA). The report suggests an increase of 1.580 million barrels of inventory versus expected declines of -2.761 million barrels.

Investors will now keep an eye over the trade/political headlines, together with the US Dollar (USD) strength as it generally has an inverse relation to commodities, for fresh direction.

Technical Analysis

While 10-day simple moving average (DMA) at $54.44 acts as immediate support, $53.20 and current month low near $50.50 may question further declines. On the upside, 100-day exponential moving average (EMA) level of $57.35 seems to limit the black gold’s near-term rise, a break of which can propel the quote to July-end to top of $58.85.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: 106.50 tested amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resume the bullish momentum in Wednesday's Asian trading and tests the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •