WTI extends the upside above $38.00 ahead of API, US elections

Prices of the WTI climb further and retake the $38.00 yardstick.
Risk-on sentiment anticipates a win by Joe Biden at Tuesday’s elections.
The API will report on US crude oil inventories later in the NA session.

Pablo Piovano FXStreet

Crude oil prices extend the optimism seen at the beginning of the week and regain the $38.00 mark per barrel and beyond on Tuesday.

WTI looks to US elections, data

Prices of the West Texas Intermediate hover around the area of 4-day highs past the $38.00 mark against the backdrop of a renewed and strong appetite for riskier assets ahead of the US elections.

In fact, commodities and the risk complex in general trade with decent gains amidst rising hopes that Joe Biden could become the next US President later this week. This scenario contemplates the likeliness of extra stimulus in the near term as well as a multilateral approach to the US-China trade conflict.

However, extra gains in crude oil or even a more serious bullish attempt look limited against the current backdrop of heightened concerns over the crude oil demand amidst the coronavirus pandemic and its impact on the world economy.

In the data space, the API will report its weekly measure of US crude oil stockpiles ahead of Wednesday’s report by the EIA and Friday’s weekly oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is up 3.04% at $38.17 and faces the next up barrier at $39.97 (55-day SMA) followed by $40.30 (100-day SMA) and finally $41.87 (monthly high Oct.20). On the other hand, a breach of $33.67 (monthly low Nov.2) would expose $29.11 (monthly high Apr.3) and then $19.29 (monthly low Mar.30).

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.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.