OIL BOUNCES BACK AS THE US RELEASE RESERVES
The price of crude oil rose in the overnight session even as Joe Biden moved to release strategic oil reserves. Brent jumped by more than 2% to $81.39 as investors reflected on the additions. It also rose since the market had already priced in the release. The new move will be coordinated with key countries like China, South Korea, India, Japan, and India. Still, analysts believe that this release is lower than what is needed to stabilize prices. They also believe that any action that does not include members of OPEC+ will not push prices lower.
The British pound was little changed as investors reflected on the strong UK manufacturing and services PMI numbers and a hawkish statement by Andrew Bailey. Data published by Markit revealed that the country’s manufacturing PMI rose to 58.2 in November while the services PMI rose to 58.6. Other numbers from the UK like employment and inflation have been strong lately. In a statement, the Bank of England (BOE) governor said that the bank will eventually have to unwind the QE program. The bank will end QE in December and possibly start hiking rates in the first quarter of 2022.
The US dollar will be in the spotlight as the country publishes the latest personal consumption expenditure (PCE), initial jobless claims, GDP, and durable goods order numbers. The data will come out today because of the upcoming Thanksgiving weekend. Analysts expect the data to show that durable goods orders rose by 0.2% in October. Also, going by the first estimate, they expect these numbers to show that the economy expanded by just 2.1% in the third quarter. This was a drop from the previous expansion of 5.7%.
EURUSD
The EURUSD pair stabilized after strong EU PMI numbers and as traders waited for the upcoming data dump from the US. The pair is trading at 1.1260, which is slightly above this week’s low of 1.1220. On the four-hour chart, the pair is still below the 25-day moving average. It is also below the important resistance at 1.1523, which was the lowest level in October. Therefore, the pair will likely keep falling in the near term.
XBRUSD
Brent has been in a bearish trend in the past few days. It dropped from a year-to-date high of $86.80 to a low of $78. It then rebounded in the overnight session after the US announced plans to release strategic reserves. The pair also moved above the 25-day and 50-day moving averages while the MACD indicator made a bullish crossover. Therefore, the pair will likely keep rising as bulls target the key resistance at 86.
NDX100
The Nasdaq 100 index declined as investors reflected on Jerome Powell’s reappointment. It dropped to $16,207, which was the lowest level since November 14. The index is trading below the dots of the Parabolic SAR and slightly below the 25-day moving average. The MACD made a bearish crossover while the Relative Strength Index (RSI) moved below the oversold level. The index will likely keep falling in the near term.
