News for The Week
US stock markets started falling, while the US dollar is rising. What to expect from
Oil and Gas Prices are In Focus Today
Markets are active. Oil and Gas prices are quite volatile. What's going on? Let's check it out!
The US Dollar Situation
The US ISM Non-Manufacturing PMI was released better than the forecast. The fact was published at 54.5 points vs. 52.5 in the forecast. According to ISM research, one respondent says the following: Prices have settled. Top management does not take the warnings of a possible recession in 2024 very seriously. The same experts warned that the country would be in a recession by now. Our general feeling is that the (Federal Reserve’s) strategy for taming inflation and building a soft landing for the economy is working better than expected.
The EURUSD hasn’t changed much yesterday. The pair grew by 0.05%. Today, the main Forex pair kept falling. The EURUSD is decreasing by 0.12%. The trend is bearish. The nearest support line is still between 1.06670 and 1.06900.
Canadian Economy
The Bank of Canada (BoC), according to expectations, left the rate unchanged at 5.0% per annum. Recall that the highest level of “key” in 22 years. If necessary, the regulator warns of possible tough action: “…The Board of Governors remains concerned about continued inflationary pressures and ready to raise the interest rate further if necessary…”
The USDCAD may soon approach 1.36900. But before this, bulls should overcome 1.36550. 100MA is heading up and Williams %R is deeply in the overbought zone. The probability that bulls will try to attack and overcome the resistance is high. In the Weekly timeframe, 100MA crossed 200MA.
Energy prices
XBRUSD was rising yesterday. By the way, oil at $150 a barrel will destroy everyone. But even at 90, Bloomberg starts with articles: What guard - stagflation again? The recession is practically official, even though inflation was falling so beautifully. Everyone was happy that they beat it, and you can lower rates just like that, even without a recession. And now, if the prices for raw materials go back up, what is it - to raise rates again? It's the same problem that Triche had in 2008, when he mistakenly raised the rate, looking at high inflation. The result was a deep recession.
According to BBG, European gas storage is almost full amid subdued demand. At the end of winter, European gas storage capacity levels are now key to global gas and LNG prices.
XNGUSD is in the bullish, growing price channel. The support is at 2.710, and the resistance is at 2.97.
What about gold, guys? XAUUSD touched the support of $1916 and tried to bounce back
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