oil

Technical Analysis – WTI oil pauses August rally, bullish above $46

Posted on August 26, 2016 at 8:46 am GMT

WTI oil prices staged a strong rally from the August lows of $40 a barrel to rise to a high of $49.34 on August 19. The market became overextended at these levels as shown by technical indicators. RSI reached overbought levels at 70 and the stochastic also reached extreme levels. So following from this, prices reversed back down to find support at $46.41. The short term bullish trend can be maintained if the market remains above its 50-day moving average which [..]

European Session – Sterling rallies to 3-week high, oil falls after EIA data show rise in inventories

Posted on August 24, 2016 at 3:05 pm GMT

Sterling was one of the best performing major currencies today as it rose to a three-week high against the dollar, above the key $1.32 level to $1.3272. The pound has had a good week so far, having risen 1.3% versus the greenback, following a 1.2% gain last week. Recent upbeat UK data has been the main driver behind the British currency’s strength. Post-Brexit economic data have been coming in better-than-expected. On Tuesday, a CBI report showed orders for British manufacturing [..]

European Session – Euro jumps on French PMI data, dollar consolidates around 100 yen, oil down for a second day

Posted on August 23, 2016 at 2:45 pm GMT

The US dollar was under pressure for a second day while the euro jumped higher in reaction to data showing the flash composite Eurozone PMI numbers rose to a seven month high in August. The better-than-expected business growth data for the euro area lowered the chance of a rate cut by the ECB soon. French PMI data showed upside surprises to the services measure but Germany’s PMI figures were not so good and showed weaker numbers across manufacturing, services and the [..]

European Session – Euro back above $1.13 as dollar rally fades; oil slips

Posted on August 22, 2016 at 2:04 pm GMT

A light economic calendar during today’s European session led currency moves to be driven by market sentiment, which turned towards risk aversion. Also, overall activity in the market is still light as the August lull led to thin trading conditions. Lack of risk appetite helped the yen gain back some lost ground against the dollar. The greenback had shot up in Asia after Fed Vice Chair Stanley Fischer added to the recent run of more hawkish Fed speakers. His comments [..]

European Session – Dollar steadies above 100 yen but set for weekly loss; loonie falls on weak retail sales, inflation data

Posted on August 19, 2016 at 3:10 pm GMT

The US dollar was back in favour today, helping it rise back above the key 100 yen level after falling below it yesterday. The greenback held above this level throughout the European session. Against the Canadian dollar, the greenback made a significant recovery today, halting nine straight days of declines, rising to a session high of $1.2890 from yesterday’s 7-week low of $1.2762. Aside from falling oil prices (the loonie is closely linked to moves in oil prices), Canadian retail sales [..]

European Session – Pound jumps on strong retail sales, dollar above 100 yen

Posted on August 18, 2016 at 2:25 pm GMT

Sterling was one of the strongest performing major currencies today after being boosted by a much better-than-expected UK retail sales report. Headline retail sales jumped 1.4% month-on-month which was far above the 0.2% gain expected. This was a surprising outcome as one would have anticipated a bigger negative impact from the Brexit vote. Warmer weather was a main factor behind the rise in retail sales volumes. The pound jumped significantly against the dollar after the data to reach its highest [..]

European Session – Sterling supported by upbeat UK jobs data; dollar slips ahead of Fed minutes

Posted on August 17, 2016 at 3:06 pm GMT

The UK employment report released today was much more upbeat than one would expect in an uncertain environment caused by Brexit. The data was surprisingly robust and lent support to sterling, which mostly held above the key $1.30 level today. A high of $1.3054 was reached in the London session following the UK labour market data. In the month of July, the number of Britons claiming unemployment benefits fell by 8,600, one month after the vote to leave the EU, [..]

FX Daily Outlook| 17-08-16

Posted on August 17, 2016 at 9:52 am GMT

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Technical Analysis – Oil bullish above 100-day moving average

Posted on August 17, 2016 at 7:20 am GMT

WTI oil has staged quite a strong rally from the August 2 low of 39.23 to the August 16 high of 46.71 but stopped just before the 61.8% Fibonacci retracement level at 46.88 (retracement of downleg from 51.65 to 39.23). The market maintains a short term bullish bias after breaking above the 100-day moving average. Immediate support lies at the 50% Fibonacci at 45.43. As long as prices remain above the 50% Fibonacci there is scope for a move higher. [..]

Asian Session – Dollar slides towards 100 yen; Sterling firms ahead of inflation data

Posted on August 16, 2016 at 8:46 am GMT

The US dollar resumed its downtrend against the yen on Tuesday as recent soft economic data continued to dampen expectations of a Fed rate hike. Traders were also cautious ahead of the latest US inflation numbers due later in the day, while comments from San Francisco Fed President John Williams also weighed on the greenback. Writing in a publication by the San Francisco Fed, Williams highlighted the limitations of monetary policy when there is little room to cut rates lower [..]

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