WTI drops to 2-week lows near $37.50, looks to data

Prices of the WTI grinds lower to the $37.20 region.
Sentiment remains sour after Trump tested for coronavirus.
US Nonfarm Payrolls coming up next in the docket.

Pablo Piovano FXStreet

Prices of the barrel of the WTI dropped further at the end of the week and printed fresh 2-week lows in the $37.20 zone.

WTI looks to data, sentiment

Prices of the barrel of the American reference for the sweet light crude oil prolonged the correction lower on Friday after President Trump tested positive for coronavirus following Tuesday’s presidential debate.

In the meantime, demand fears continue to keep crude oil prices depressed so far this week despite inventories in the US continue to shrink, as per recent weekly reports from the API (Tuesday) and the EIA (Wednesday).

Later in the session, US Nonfarm Payrolls for the month of September will be in the limelight along with the U-Mich index. In the crude oil space, driller Baker Hughes will release its weekly oil rig count.

WTI significant levels

At the moment the barrel of WTI is losing 2.63% at $37.52 and a breach of $36.15 (monthly low Sep.8) would expose $34.38 (low Jun.15) and then $31.16 (low May 28). On the other hand, the next up barrier aligns at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold moves away from one-week low, climbs above $4,450 as USD edges lower ahead of CPI

Gold builds on its modest intraday recovery from the $4,300 neighborhood, or a one-and-a-half-week low, touched earlier this Friday, and climbs above $4,350 heading into the European session. The upside potential, however, seems limited as traders opt to wait for the release of US consumer inflation figures before placing directional bets.

Cardano approaches critical support as correction risks grow

Cardano (ADA) recovers slightly, trading at $0.206 at the time of writing on Friday, inches above the critical support zone after losing more than 6% so far this week. Weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook, with a decisive close below the support zone potentially triggering a deeper correction for ADA.

US core CPI data set to ease in August as markets reprice Fed September rate decision

The US Bureau of Labor Statistics will publish the August Consumer Price Index data on Friday. The report is expected to show a small decline in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.