WTI/USD – Crude Improves to 2-Week High as Consumer Confidence Sparkles

US crude futures have posted gains in the Tuesday session, trading at $53.78. Crude is currently at its highest level since December 14. Brent crude futures are trading at $55.94, as the Brent premium stands at $2.16. On the release front, CB Consumer Confidence climbed to 113.7, easily exceeding the estimate of 108.9. On Wednesday, the US releases Pending Home Sales, with the markets anticipating a strong gain of 0.6%.

US consumer confidence indicators continue to point upwards, in what analysts are describing as a post-election surge in optimism. The CB Consumer Confidence report surged in December to 113.7, its highest level since August 2001. This reading comes on the heels of UoM Consumer Sentiment, which climbed to a 12-year high, with a reading of 93.8 points. Clearly, consumers are optimistic that the economy will continue to improve under Donald Trump. Both of these well-respected surveys found that consumers are confident that continuing economic growth will create new jobs and raise incomes. Trump’s economic platform remains short on details, but he has promised to cut taxes while increasing fiscal spending.

The US economy continues to expand at a brisk clip, as underscored by the most recent revision to third quarter GDP. The Final GDP reading of 3.5% beat the estimate of 3.3%. This figure marked an upward revision of the previous GDP estimate of 3.2%. The stellar reading can be attributed to stronger consumer spending and an increase in business investment, and marked the strongest growth rate since the third quarter of 2015.

WTI/USD Fundamentals

Tuesday (December 27)

• 9:00 US S&P/CS Composite-20 HPI. Estimate 5.0%. Actual 5.1%
• 10:00 US CB Consumer Confidence. Estimate 108.9. Actual 113.7
• 10:00 US Richmond Manufacturing Index. Estimate 5. Actual 8

Wednesday (December 28)

• 10:00 US Pending Home Sales. Estimate 0.6%

*All release times are EST

*Key events are in bold

WTI/USD for Tuesday, December 27, 2016

WTI/USD December 27 at 12:50 EST

Open: 53.15 High: 53.97 Low: 53.04 Close: 53.78

WTI USD Technical

• WTI/USD was flat in the Asian and European sessions. The pair has posted gains in the North American session
• 52.22 is a weak support level
• 58.32 is the next resistance line

Further levels in both directions:

• Below: 52.22, 46.54, 40.57 and 33.22
• Above: 58.32, 65.05 and 72.99

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