Crude Oil, US Dollar, WTI, Brent, AUD, JPY, NZD, Fed, Powell – Talking Points
- Crude oil prices Low slip on recession expectations with high rates
- APAC Equities The sunken and futures markets mark a tough day for the EU and the US
- All Eyes on the Fed Chair’s Testimony.WIllness Will Inflation Struggle Reduce WTI?
Crude oil has plummeted today as all of the assets at risk were stressed after yesterday’s relief rally.
There are reports that US President Joe Biden is working on a gasoline tax holiday project. This is the way forward Jennifer Granholm, Secretary of EnergyHe held a meeting with oil refinery representatives on Thursday.
The WTI futures contract traded as low as US $ 105.00 today, while the Brent deal went for US $ 110.29 bbl. The two have recovered somewhat since then.
Typical of a risky retreat environment, high beta acy and ear are noticeably poor performing currencies. The US dollar and the Japanese yen strengthened through the Asian session.
In emerging markets, the Philippine peso fell to a 16-year low. Other EM Asian currencies are down to varying degrees against the USD.
APAC equities are the Red Sea, although Japanese stocks are holding well but US futures are indicating a negative start to their cash session.
In an online event, non-voting Richmond Federal Reserve President Thomas Barkin Said, “T.His soul, you want to get back to where you want to go as fast as you can without breaking anything.”
This was seen in support of the jumbo hike at the July Federal Open Market Committee (FOMC) meeting. Such aggressive increases by the Fed have given rise to the definition or otherwise of a US recession.
The benchmark 10-year Treasury is stable at close to 3.26%. Gold has previously traded below US $ 1,830 per ounce.
After today, Fed Chair Jerome Powell Will Let me testify before Congress There, they are expected to roll out the Fed’s strategy to deal with inflation.
There are other central bank speakers to look out for along with the Canadian CPI.
View the entire financial calendar Here.
Technical analysis of crude oil (WTI)
Crude oil is testing the lower boundary of the ascending trend channel. Below that line is 100-day Simple Moving Average (SMA) And slightly lower again the previous low at 103.24.
A break below all these potential support levels could see the bear momentum unfold.
Such a move would be below the lower boundary 21-day Simple Moving Average (SMA) BasedThe Bollinger Band The volatility can be seen as coming out.
Topside resistance may be at breakpoints of 111.20 and 116.57.
Chart CShown in Trading View
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the comments section below or @DanMcCathyFX On Twitter