• Home
  • Contact
  • Privacy Policy
  • Store
my forex coaching
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
my forex coaching
No Result
View All Result
Home Forex News

Iran News, US/China Economic Woes Deliver One-Two Punch

Forex Tips by Forex Tips
August 16, 2022
in Forex News
0
Iran News, US/China Economic Woes Deliver One-Two Punch
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


WTI Crude Oil, Brent Crude Oil, Iran, China, EIA, Technical Forecast – TALKING POINTS

  • WTI and Brent crude prices fell hard after downbeat Chinese and US economic data
  • Iran responded to the EU draft text, bringing a US/Iran deal one step closer to reality
  • Crude oil prices moderate at 61.8% Fib after piercing below the 90 psychological level

WTI crude and Brent crude oil prices plunged lower to start the week after traders digested downbeat US and Chinese economic data. In Asia, China’s industrial production and retail sales data for July missed analysts’ expectations, with industrial production rising 3.8% y/y versus 4.6% expected and retail sales increasing 2.7% y/y against 5.0% expected. The People’s Bank of China (PBOC) cut its medium-term lending facility by 10 basis points, signaling renewed appetite to support economic growth. However, the move failed to allay recession woes among commodity traders.

The New York Empire State Manufacturing Index showed a sharp drop in general business conditions, falling 42 points to -31.3. Broad weakness in the shipments, new orders, and unfilled orders subcomponents drove the headline figure lower. According to the data, survey respondents don’t expect conditions to improve much over the next six months. The 10-year/2-year US yield curve remains deeply inverted, although equity traders bought stocks amid softening Fed rate hike bets.

Oil prices came under more pressure after news broke that Iran responded to the EU’s final draft text to restore the 2015 nuclear deal. Earlier, Hossein Amir-Abdollahian, Iran’s Foreign Minister, said a deal is within reach, granted the US is “realistic.” While hurdles remain, the United States and Iran are one step closer to an agreement, which could see Iranian oil return to the global market within months. Iran may be capable of increasing global supply by upwards of 2 million barrels per day, although it would likely take time for production to ramp up to those levels.

Amid fragile sentiment that hinges on global recession fears, the prospect of a deal will likely keep oil prices subdued. Backwardation in WTI’s prompt spread—the difference between the current and next month’s contract price—has fallen to just 56 cents, the lowest since April. The decline suggests that oil prices may continue to fall. In the meantime, inventory reports from the American Petroleum Institute and the Energy Information Administration are due in the coming days. Brent prices are slightly higher through APAC trading but prices remain nearly 4% lower on the week.

oil prompt spread

Chart created with TradingView

WTI Crude Oil Technical Outlook

Crude oil prices broke below the 90 psychological level after falling further from the 20-day Simple Moving Average that. Prices have repeatedly failed to climb above that SMA since early July. The 61.8% Fibonacci retracement is underpinning prices but a break lower would threaten a zone of support not traded at since earlier this year.

WTI Crude Oil Daily Chart

wti crude oil chart

Chart created with TradingView

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwater on Twitter





Source link

Share76Tweet47

Related Posts

USD/JPY Loses Altitude and Sinks to Support, AUD/USD Defies Ironclad Resistance

AUD/USD Charts Bullish Technical Setup as USD/JPY Defies Channel Resistance

by Forex Tips
September 21, 2023
0

Trade Smarter - Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team...

USD/JPY Breaks Major Trendline Resistance as USD/CAD Defies Key Moving Average

USD/JPY Treks Higher as AUD/USD Carves Out Double Bottom

by Forex Tips
September 20, 2023
0

USD/JPY TECHNICAL ANALYSISUSD/JPY took a quick plunge early last week, but found solid footing just above technical support at...

Wait-and-See in Lead-Up to Fed’s Decision, RBA Minutes in Focus

Wait-and-See in Lead-Up to Fed’s Decision, RBA Minutes in Focus

by Forex Tips
September 19, 2023
0

Market Recap Recommended by Jun Rong Yeap How to Trade FX with Your Stock Trading Strategy Market sentiments remained...

What is it and How Does it Work?

US Dollar, Fed, Sterling, BoE, Japanese Yen, BoJ and More

by Forex Tips
September 18, 2023
0

Recommended by Daniel Dubrovsky How to Trade EUR/USD The US Dollar mostly underperformed against its major counterparts this past...

Gold Prices Tepid Despite Lower Yields Post-CPI. Is the Bullish Case Over?

Gold Prices Bounce Off Fibonacci Support, Attacks Cluster Resistance. What Now?

by Forex Tips
September 17, 2023
0

GOLD PRICE FORECAST:Gold prices rebound heading into the weekend, challenging cluster resistance stretching from $1,920/$1,930Despite Friday’s recovery, the fundamental...

Load More

Recent Posts

  • 00 GMT when France 40 traded near 7,344.90.
  • Our data shows traders are now net-short EUR/GBP for the first time since May 04, 2023 when EUR/GBP traded near 0.88.
  • Japanese Yen Remains at Risk After the Fed, Retail Traders Unwind USD/JPY Bullish Bets
  • Australian regulator sues Kraken provider over margin trading product
  • XAU/USD, XAG/USD at Risk to Higher Treasury Yields
Forex Pulse Detector

Categories

  • Alerts
  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.