xysoom: Oil Prices Hit Fresh High on Uncertain Outlook

xysoom

WTI crude oil embraced a steep rise in prices, up 4.5% to the high level of $43.68, compared to its low level of $41.76. It has recorded a fresh five-month high since March 6. Nevertheless, the outlook of oil remains uncertain because of the insufficient upward momentum in future oil prices resulted from the sluggish job growth in the United States.To get more news about WikiFX, you can visit wikifx official website.
　　U.S. ADP reported on August 6 that, payrolls increased by just 167,000 in July, which is well below market estimates of 1.2 million. Dragged by the prints, oil prices eased back to around $42.50.
　　Currently, U.S. non-farm payrolls, which is due to release on August 7, is estimated to add just 1.6 million, far below June's figures — a record high of 4.8 million at that time.
It is notable that the dollar is still a safe haven currency recognized by markets. Languishing DXY sends all other currencies, gold and U.S. stock markets to higher level, wherein gold has refreshed a record high of $2,055.8.


　　WikiFX warns that once the risk aversion grows, the dollar purchase may jump as investors seek safe haven in the greenback, which will limit further gains in oil prices.

On Thursday European trading session, USD witnessed a retreat in full, creating space for a rebound in EUR/USD. While spot gold hovered around $1,930, WTI eased back to $42.5.
　　The massive bond auctions dragged Treasury yields lower, and thats may be the reason for USD weakness. Early this week, DXY failed to keep the $94.00 zone, which prolonged its downtrend.
　　EUR/USD is extending its upside momentum and looks for chance to consolidate its 1.18 pivot key of the near term, which in turn is expected to boost the bullish momentum. Thus it will not be a surprise if it breaches the 1.19 in the short run.
　　GBP/USD gained some energy this Thursday, stopping its two-day decline with buyers keeping an eye on the 1.3100 barrier recovery.
　　Gold prices took a roller coaster rider from Tuesday to Wednesday and hovered around $1,930 on Thursday. Markets suggest that the sluggish USD may inspire bulls for gold.
　　Crude oil holds its initial support level at $42.30. According to the OPEC Monthly Oil Market Report, the global oil demand this year may decrease by 9.06 million barrel/day.