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Forex Today: Crude oil falls sharply to 5-month lows

Forex Today: Crude oil falls sharply to 5-month lows

The price of crude oil continued to fall to 5-month lows due to weak Chinese economic data and demand and fears of oversupply.

➡️ Crude oil continues to look weak, dropping sharply to a new 5-month low yesterday, with WTI trading as low as $69.13. The decline is due to a general risk appetite in the market in recent days, but also to fears of excess supply and a growing economic slowdown in China. Trend following traders may be interested in the short side.

➡️ Yesterday's Bank of Canada policy meeting held no surprises. It left the overnight rate unchanged at 5%, while maintaining its aggressive orientation. The Loonie didn't react.

➡️ ADP Nonfarm Employment Change Forecast yesterday was for just 103,000 new jobs created last month, while the forecast was 131,000. This is further evidence of a slowing US economy.

➡️ Market sentiment has become more risk-on in recent days, strengthening the U.S. dollar and depressing stocks, also causing the sell-off of many raw materials. In the Forex market, since the Tokyo opening, the Japanese yen has been the strongest major currency, while the New Zealand dollar has been the weakest.

➡️ Bitcoin is conducting a bullish consolidation near its recent 18-month high above $44,000. The cryptocurrency has declined in recent hours, but will remain interesting on the long side for trend traders.

➡️ The euro is relatively weak as market analysts increasingly expect more rate cuts from the European Central Bank in 2024.

➡️ US unemployment claims data will be released today, expected to see new claims of 221,000 last week.

 

Credit by DailyForex.com

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