Crude Oil Prices May See Clashing Cues in Eurozone PMI, EIA Data
- Crude oil prices edge up as risk appetite firms in Wall St. trade.
- Eurozone PMI, EIA inventories data may offer divergence cues.
- Gold prices vulnerable as US.
Dollar attracts liquidity demand
Crude oil prices rose with stocks in risk-on Wall Street trade. Markets cheered after the US Congress reached a debt ceiling deal with the White House, reducing uncertainty and unlocking some capacity for fiscal policy support. Meanwhile, hopes for easing US-China trade war tensions emerged as a meeting between President Trump and key tech executives hinted that lowering sales restrictions on Huawei may be on the table.
The chipper move translated into higher bond yields. The US Dollar had been trending higher since the prior day, and an upshift in rates-based support certainly didn’t hurt. Taken together, that understandably eroded support for non-interest-bearing and anti-fiat assets to the detriment of gold prices.
Looking ahead, a downbeat set of Eurozone PMI figures might pull the spotlight back to the broader slowdown in global growth, souring sentiment and nudging oil back downward. Losses might be capped if EIA inventory data – where a 4.4-million-barrel drawdown is expected – registers closer to yesterday’s API projection calling for a mammoth 10.96-million-barrel drop.
As for gold, a risk-off shift in the markets’ mood might see lower bond yields competing for influence with a US Dollar buoyed by liquidity demand. If scope for pricing in further Fed easing is as exhausted as it seems, the Greenback might prevail and pressure the yellow metal downward.
- Crude oil prices edge up as risk appetite firms in Wall St. trade.
- Eurozone PMI, EIA inventories data may offer divergence cues.
- Gold prices vulnerable as US.
Dollar attracts liquidity demand
Crude oil prices rose with stocks in risk-on Wall Street trade. Markets cheered after the US Congress reached a debt ceiling deal with the White House, reducing uncertainty and unlocking some capacity for fiscal policy support. Meanwhile, hopes for easing US-China trade war tensions emerged as a meeting between President Trump and key tech executives hinted that lowering sales restrictions on Huawei may be on the table.
The chipper move translated into higher bond yields. The US Dollar had been trending higher since the prior day, and an upshift in rates-based support certainly didn’t hurt. Taken together, that understandably eroded support for non-interest-bearing and anti-fiat assets to the detriment of gold prices.
Looking ahead, a downbeat set of Eurozone PMI figures might pull the spotlight back to the broader slowdown in global growth, souring sentiment and nudging oil back downward. Losses might be capped if EIA inventory data – where a 4.4-million-barrel drawdown is expected – registers closer to yesterday’s API projection calling for a mammoth 10.96-million-barrel drop.
As for gold, a risk-off shift in the markets’ mood might see lower bond yields competing for influence with a US Dollar buoyed by liquidity demand. If scope for pricing in further Fed easing is as exhausted as it seems, the Greenback might prevail and pressure the yellow metal downward.