News Technical Analysis

Oil Prices Slide 1.5% on Record US Inventories and Asian Demand Worries

Market News Summary

The European Stoxx 600 index rose to its highest level in over a month yesterday, thanks to a slowdown in inflation in major economies, bolstering bets on ending the tightening monetary policy pursued by central banks.

After a report indicating stability in inflation in the United States, new data showed that UK inflation slowed more than expected in October. At the same time, German wholesale prices witnessed their largest decline in nearly three and a half years in October, another sign of declining inflationary pressures in the largest economy in Europe.

Dollar Index (USDX)

Following positive inflation data on Tuesday, supplementary figures released yesterday, Wednesday, revealed the most significant decline in producer prices in three and a half years in October. This drop is linked to a decrease in gasoline prices, offering additional confirmation of the alleviation of price pressures.

Additionally, retail sales data showed a less-than-expected decrease of 0.1% in October, compared to expectations of a 0.3% decline.

Pivot Point: 104.15

Resistance level Support level
104.45103.90
104.70103.60
105.00103.35

Spot Gold (XAUUSD)

On Wednesday, gold prices rose to their highest level in over a week, driven by a weakening dollar and declining US Treasury bond yields. This came after data indicating a decrease in inflation, fuelling speculation that a cut in US interest rates may occur sooner than anticipated by investors.

Gold in spot transactions increased by 0.4% to $1970.45 per ounce, while US futures for gold rose by 0.4% to $1974.70 per ounce.

Pivot Point: 1963

Resistance level Support level
19711951
19831943
19901931

Dow Jones Index (DJ30ft – US30)

On Wednesday, US indices closed with modest gains, bolstered by economic data that reinforced investor optimism that the Federal Reserve had completed its interest rate hikes.

The Dow Jones index rose by approximately 0.5%, equivalent to 163 points, marking its highest daily close in three months. Additionally, the S&P 500 and Nasdaq indices increased by 0.15% and 0.1%, respectively, recording their fourth consecutive daily gains.

Pivot Point: 35005

Resistance level Support level
3511534910
3521034800
3532034705

US Crude Oil (USOUSD)

Yesterday, Wednesday, oil prices declined by more than 1.5% at settlement, driven by a higher-than-expected increase in crude oil inventories in the United States, reaching a record production level. Additionally, concerns grew about demand volume in Asia.

Brent crude futures dropped by $1.29, or 1.6%, to $81.18 per barrel. Meanwhile, West Texas Intermediate (WTI) crude fell by $1.6, or 2%, to $76.66 per barrel.

Pivot Point: 77.20

Resistance levelSupport level
78.1075.65
79.6574.75
80.5573.20

Risk Warning

This article provides real-time market analysis from contributing analysts. Please note that any views expressed in this article do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this article.

Designer

Recent Posts

Role and Regulation of Forex Brokers in India

As the largest market in the financial world, the Forex Exchange Market attracts trillions of…

21 hours ago

Account

When you open an account with a broker, you gain access to a platform where…

2 days ago

Adjustable Peg

An exchange rate system where a currency’s conversion rate is ‘pegged’ (fixed) in relation to…

3 days ago

Average Directional Index (ADX)

Average Directional Index (ADX) is a technical indicator that is used to gauge the strength…

4 days ago

Account Equity

To put it simply, account equity is the real-time value of your current account balance…

5 days ago

(Updated) October Rollover Dates

Dear Valued Clients, Please be advised that the following CFD instruments will be automatically rolled…

5 days ago

This website uses cookies.