Whilst there appears to be some optimism of a deal being reached, this is definitely not the first time that reports of progress have surfaced.ĮIA data is expected to show that inventories fell by 1.5 million barrels. Should a deal be agreed then sanctions on Iranian oil could be lifted. Talks to revive the Iran nuclear deal continue with Iran reportedly softening its position. Instead, production cuts would likely coincide with the return of Iranian oil to the market. However, other sources from OPEC also said that any output cuts would not be imminent, taking the wind out of the rally. The Saudi energy minister’s comments caught the market off guard and came after oil prices have dropped in recent weeks. The jump higher in oil prices came after Saudi Arabia hinted at possible output cuts to stabilize the market. Oil rallied 4%, extending those gains ahead of the European open. Sellers need to break below 0.99 to extend the bearish trend.īuyers will be looking for a move over the 20 sma and 1.00, the psychological level to bring 1.0120 the 50 sma into play. The rebound from the 0.99 2022 low ran into resistance at the 20 sma 1.00 and has since fallen lower again. US durable goods orders are due later today as well as pending home sales.ĮUR/USD has been trending lower since August 11 before running into support at 0.9904, taking the RSI into oversold territory. There is little doubt that the war has caused huge damage to the German economy and a quick bounce back is off the cards.
#Price of oil market watch free#
Given that it is expected to take until 2025 for Germany to be free from all exposure to German gas, the impact of the war could go on for years. The threat of an imminent recession in Europe as the energy crisis continues is keeping the euro out of favor. Any dovish pivot from the Fed is looking unlikely.
His comments are the largest in a string of hawkish Fed rhetoric ahead of the Jackson Hole Symposium which kicks off tomorrow.
Today the pair is falling again after hawkish comments from Federal Reserve President Neel Kashkari who warned about the risk of underestimating price pressures. EUR/USD rose to a high of 0.9970 but notably failed to retake 1.00. Oil extends gains after Saudi Arabia hints at output cuts & ahead of EIA data.ĮUR/USD bounced yesterday following weaker-than-expected US PMI data, which resulted in investors pairing back bets of an aggressive Federal Reserve. EUR/USD fails to regain parity, US durable goods orders up next.
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