Oil eases but another run at resistance may be on the cards
Oil prices are pulling back a little today as Brent and WTI bear down on major resistance levels. WTI is closing in on USD49-50 after a remarkable run since early November, during which it rallied more than 40%. A US stimulus package and Brexit deal could give crude prices one final bump at which point a lot of good news is priced in, while near-term downside risks seem underpriced. We could see a lot of profit-taking in the short-term as crude closes in on that resistance zone.
Gold eyeing USD1,900 after Fed bounce
Gold is having a breather after enjoying another very good week. The yellow metal was not deterred by the Fed’s upbeat economic assessment, or its reluctance to increase asset purchases. Instead, traders focused on the marginal easing as Powell committed to continuing currency purchases for longer, in keeping with previous comments on interest rates. The central bank seems committed, in theory, to keep rates lower for longer than it would in the past and that applies to purchases as well. That could continue to support the yellow metal, especially given the direction of travel for the dollar.
Bitcoin just getting started
Bitcoin showing a little fatigue after the midweek charge through USD20,000 which opened the floodgates as traders looked to capitalize on the almost inevitable surge that followed. This is bitcoin doing what bitcoin does and as ever, it carried the rest of the crypto space along with it. I don’t think it’s done yet and while the rest of the markets may settle into holiday mode now, this may only just be getting started. Strap yourselves in, it’s going to be a wild end to the year.
For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-events/
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