The US shale oil industry has seen a marked recovery since February last year because of higher oil prices. The US Baker Hughes data, that records the number of new Oil Rigs, is showing additional Rigs added every week. The increase in shale oil supply has offset OPEC’s recent output cut effort to an extent.…
Read moreThe dollar index saw a rebound with strong bullish momentum on Monday after hitting a 6-month low of 98.40 last Friday. This morning, during the European session, the dollar index bulls have recovered the significant resistance level at 99.00. USD/JPY hit a high of 113.83, last seen on March 15. The dollar index has given…
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During the early Monday Asian session, EUR/JPY hit a high of 124.49, last seen on May 12 of 2016, helped by Macron’s victory in the French presidential election. However, it saw a subsequent retracement, due to profit-taking, falling back below the psychological level at 124.00. On the 4-hourly chart, EUR/JPY broke through the near-term major…
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The crucial US labour market data for April will be released this Friday May 5, at 13:30 BST. It includes non-farm payrolls, unemployment rate and average hourly earnings. Please note that the release of US labour market data will likely cause volatility for USD, USD crosses and commodities. Spot gold has retraced around 3.6% since…
Read moreThe FOMC kept rates on hold on Wednesday which was in line with market expectations. The FOMC stated that the weak Q1 GDP is transitory and business investment firmed. The FOMC left the door open to a June rate hike in the statement. Per the CME’s FedWatch tool, the probability for a June rate hike…
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GBP has been the strongest currency over past three weeks. GBP/USD has seen a 4.6% rise since April 10, largely because of UK Prime Minister Theresa May’s sudden announcement of a snap general election on April 18. On the daily chart, the price is still holding above the downside 10-day SMA support. Nevertheless, the bullish…
Read moreEurozone Q1 GDP initial readings (YoY and QoQ) will be released at 10:00 BST today, followed by the US Markit Services and Composite PMIs (Apr) at 14:45 BST, the US ISM non-manufacturing PMI (Apr) at 15:00 BST and the FOMC interest rate decision at 19:00 BST. The crucial US ISM non-manufacturing PMI and manufacturing PMI…
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This morning, the Reserve Bank of Australia (RBA) kept interest rates on hold at 1.5% which was in line with market expectations. The RBA sees an upswing in the global economy and foresees Australian economic growth to increase gradually at around 3% over the next couple of years, helped by rising in mining investment and…
Read moreGlobal equities rose with U.S. futures, fixed income retreated and JPY weakened as a tentative deal by the U.S. Congress to avert a government shutdown overshadowed weaker economic data from China and the U.S. over the past few days. Per Republican and democratic aides, the U.S. House and Senate negotiators reached a tentative bipartisan agreement…
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Spot gold has seen a 1.56% retracement over past two weeks after hitting its highest level of 1295.37 last seen on November 9th 2016. That said, this retracement has held above the support line at 1260 over the past two days. On the 4-hourly chart, the price broke the downtrend line resistance on April 26,…
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