Precious Metals Under Pressure, Oil Stable, Dollar Gaining Strength

After the first two trading days of the week brought a bounce in the stock market, yesterday, the U.S. indices turned red. With them, the dollar bounced (only a bit, though), and the pressure on the European markets increased as well.

The technology sector declined the most yesterday. Nasdaq 100, the benchmark index for the sector, dropped over 2%. Apple is down for the year, while Tesla dropped another 5% or so from the highs. Of the major stock market indices, only the Dow Jones fared better, probably because it has less exposure to the tech sector.

In Europe, the markets followed the U.S. indices’ lead. At the time of writing this article, the futures are red across countries – Ibex in Spain down 0.57%, Dax in Germany down 0.2%, EURO STOXX 50 down 0.08%. As you can see, nothing dramatic, and in line with levels, we’ve seen recently, but still weak.

On the commodities front, the WTI crude oil is back above $61, natural gas is up 0.21%, while gold found some support at the $1,710 area.

Daily Analysis

With one day left until the NFP in the United States, the focus today will be on the Unemployment Claims release and the speech held by Jerome Powell late into the North American session. The ADP or private payrolls yesterday disappointed. While positive, the actual differed substantially from the forecast, casting doubts on the jobs market recovery. Anything out of the OPEC meeting today may move the price of oil, so that is a volatility risk for financial markets.

Markets to Watch

Crude oil, GBPUSD, silver – markets in focus today.

Crude Oil

Crude oil cannot overcome resistance (yet), but it stays above the $60 level, which is a bullish signal on the short to medium term. Also, while belonging in the rising channel, the pressure remains to the upside. What is interesting is that on the recent move lower it found support at a confluence area. On the one hand, the $60 level acted as horizontal support, while on the other hand, the lower edge of the rising channel acted as a dynamic one. Bears should keep in mind that as long as the series of higher highs and higher lows holds, crude oil will have a hard time reversing. OPEC meeting today may move the market.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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