WTI
The oil market continued its bullish trend on Thursday, with the U.S. benchmark crude, West Texas Intermediate (WTI), surging over $2. This surge was primarily driven by tightening U.S. crude inventories and reassurances from OPEC+ regarding the maintenance of output cuts. Tensions in the Middle East and the ongoing Russia-Ukraine conflict further contributed to the bullish sentiment.
As of 4:23 p.m. ET on Thursday, WTI was trading up 2.05% at $83.02 per barrel, while Brent crude, the global benchmark, was up 1.61% at $87.48 per barrel. Notably, WTI has gained 14% since the beginning of the year, reflecting the ongoing strength in the market.
Position and Entry Suggestions: With the continued bullish momentum in the oil market, traders may consider maintaining or initiating long positions in WTI. A breakout above the current resistance levels could signal further upside potential. Keeping an eye on geopolitical developments and inventory data will be crucial in assessing the market's direction.
USDJPY
The USD/PY pair remained in positive territory for the second consecutive day, trading near 151.45 during the early Asian trading hours on Friday. The Japanese Yen (JPY) faced selling pressure due to the Bank of Japan's (BoJ) cautious stance on maintaining accommodative monetary conditions.
Japan’s Kishida emphasized the importance of the BoJ's easy monetary policy, which further weighed on the Yen. Additionally, comments from Fed’s Waller, indicating no rush to cut rates and the need for a prolonged low-rate environment, supported the USD.
Position and Entry Suggestions: Given the current momentum, traders may consider maintaining long positions in USD/JPY. However, monitoring any developments regarding central bank policies and economic indicators is essential for assessing potential entry points and managing risks.
XAUUSD
XAUUSD prices continued to flirt with record highs, reaching around $2,230 during the Asian session on Friday. The precious metal received support from safe-haven flows amid growing economic concerns and expectations of interest rate cuts from the US Federal Reserve (Fed).
However, the outlook for gold is somewhat tempered by easing expectations for Fed rate cuts, which could strengthen the US Dollar (USD) and potentially limit the upside for USD-denominated gold.
Position and Entry Suggestions: Traders may consider maintaining long positions in gold, given the ongoing safe-haven demand and economic uncertainties. However, it's essential to monitor the USD's strength and any shifts in Fed policy expectations, which could influence gold prices. Setting appropriate stop-loss levels and closely following market developments is advisable to navigate potential volatility.
Conclusion
In conclusion, the oil market remains bullish due to supply concerns and geopolitical tensions, while the forex market sees the USD holding firm against the JPY. Gold prices continue to benefit from safe-haven demand but face potential headwinds from USD strength.
Disclaimer
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Paraphrasing text from FXStreet, and Oilprice all rights reserved by the original author.
