Midday Update
Oil markets opened lower as investors are pricing in a potentially massive injection of oil output by the Biden administration. President Biden is set to speak later midday on energy prices after pledging 1 million barrels a day from US oil reserves to fight inflation. Kyiv says talks with Moscow may resume on Friday despite a failed round of peace talks on the previous diplomatic meetings.
Inflation skyrockets in the Euro area with UK-shop-price inflation speeding up, French inflation jumps more than expected to new record highs, and Italian Inflation hitting the highest in 3 decades pressuring the ECB to adjust policy course in the near-term. Investors eye the results of the OPEC+ meeting scheduled early in the New York session.
The Dollar Index soared +0.26% early European session after bouncing off near-term support at 97.70. Bulls need to challenge the 98.70 near-term resistance which coincides with a 50-day moving average on the H4 chart to reinforce bullish momentum.
USDCAD pushed higher as the Canadian dollar got weighed down by falling oil prices. The pair rose +0.39% after slightly sweeping below 1.2450, 4-month support attractive bullish participation in the near-term.
A critical area to watch is a near-term resistance at 1.2560 near-term resistance. Canadian GDP data is due for release later in the New York session, and traders should expect volatility.
EURGBP slid by -0.22% earlier in the European session as the pound got boosted by better-than-expected GDP data. The pair is currently trading above near-term support at 0.8450 and a possible break below that area may cause a near-term selling pressure towards 0.8400.
If the price manages to break above 0.8500 near-term resistance a possible bullish target at 0.8600, a 6-month high. ECB members Lane and De Guindos will be speaking later in the New York session.
EURCHF dropped by -0.38% as the Eurozone continues to be weighed down by soaring inflationary pressure. Bears may be stopped by a 1.0250 area from further downside pressure, however, a break below that mid-figure may see the pair drop towards 1.02000 near-term support. Investors turn focus to the SNB gov board member Maechler’s speech later in the day.
European equities opened lower, with CAC40 sliding by -0.56% as bears trade below 6700 near-term support. FTSE loses -0.17% as price crosses below a critical 50-day moving average dynamic support and a possibility to trade to 7520.00 near-term support. The DAX dropped by -0.45% and may revisit 14200 as bears dominate the trend in the near term.
US equities closed lower on Wednesday with Nasdaq losing -1.10% taking a corrective pattern to 15000 psychological support. The index may trade lower if 15000 near-term support fails to hold in the near term. The S & P 500 closed at 4602.00 losing -0.63% while the Dow Jones industrial index shed -0.19% closing at 35228.82.
Commodity prices plunged early Thursday as the US pledged a release of massive oil stockpiles in a bid to curb rising energy prices. The US WTI dropped by -5% to $100/barrel and a possibility to trade lower if bears break below the $100 near-term support.
UK Brent futures dropped by -6% early morning from $112.8/barrel ahead of the OPEC+ meeting. Gold slid lower by -0.20% but found a near-term barrier at 1920.00 which coincides with the 50-day moving average on the H1 chart.
