Brent (UKOil) & WTI (USOil) In Downtrend. USD Stronger after Jackson Hole but Gold (XAUUSD) Erratic.
Hey Valutraders! Crude Oil is trading down. Let’s find out why.
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I’m Brad Alexander and in this week’s Market Blast Fundamentals, let’s look at the S&P 500 (US500), Gold (XAUUSD), GBPUSD, EURUSD, and WTI (USOil).
Even with OPEC production cuts, the price of WTI and Brent Crude is trending down.
The reason is that the markets are not confident about the economic recovery of China and we still have the possibility of recessions in the US and Europe, which will affect demand for oil.
So, if you like to trade Crude Oil, keep an eye out this week for the WTI Inventory report and some important Chinese PMIs that will give investors and traders some clues as to the direction of Chinese recovery.
Also, we have lots of news from the US this week including Consumer Confidence, GDP, Home Sales and lots of Employment data including the Non-Farm Payrolls.
In last week’s videos, we strongly encouraged you to watch the news from Jackson Hole and Jerome Powell was hawkish in that he saw more Interest Rate rises coming which strengthened the USD.
Gold was affected temporarily by USD strength but the market was more interested in the US PMI figures from Wednesday that were lower than expected.
Regardless, this was enough to have price action break out of the Falling Wedge that we had been watching for weeks.
We will take a look at this from the technical side tomorrow.
Last week’s US PMI numbers had a negative impact as well on all US Indices like the S&P 500 but it gave investors an opportunity to “Buy the Dip”.
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