Currencies linked to oil prices pop on Monday after an attack on Saudi Arabian oil production facilities over the weekend knocked out 5% of the world’s production, with some analysts speculating that it could take months to bring the facilities back online.
Investing.com - Stocks moved lower overall on Monday in the wake of the drone attacks on Saudi Arabian oil facilities and oil fields.
With no major events to kick off the week, the Canadian dollar and Mexican peso are showing little movement. The British pound is showing some volatility and has retracted after ending last week with sharp gains.
British Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker agreed Monday to ramp up talks on securing an elusive Brexit deal, but the two sides gave starkly different assessments of how far apart they are.
Gold markets gapped higher but have then pulled back significantly bearish pressure in a market that is trying to come to terms with the lot of negative issues out there that are just waiting to jump into the fray.
The US dollar gapped lower to kick off the trading session against the Japanese yen, as traders look for the safety of the yen after the drone attacks in Saudi Arabia. That being the case, we fell immediately but have spent the rest of the time trying to fill that gap.
The British pound fell a bit to kick off the week on Monday, as there was a general run toward safety after the drone attacks in Saudi Arabia. Beyond that, the British pound had been over bought so quite frankly it makes quite a bit of sense that we have pulled back.
The British pound gapped lower against the Japanese yen to kick off the week on Monday as the tensions in the Middle East and more importantly the drone attacks have caused a lot of fear.
The Euro initially tried to rally at the open on Monday, but as the markets raced toward safety, the US dollar got a bit of a boost against the common currency. Beyond that, there are recessionary headwinds and places like Germany, and that of course weighs heavily upon the Euro.
The Australian dollar try to rally during the trading session on Monday to kick off the week but rolled over to show signs of exhaustion. The shooting star of course is a negative sign, and the fact that we can’t break above the 50% Fibonacci retracement level also suggests that we are ready to roll over a little deeper.
Investing.com - Gold returned to $1,500 Monday, riding the coattails of the biggest oil rally in three decades ahead of a Federal Reserve meeting later in the week.
Based on the early price action and the current price at $1508.10, the direction of the December Comex gold market on Monday is likely to be determined by trader reaction to the uptrending Gann angle at $1502.40 and the downtrending Gann angle at $1502.20.
Based on the early price action and the current price at 1.1043, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 1.1045.
Sharply higher crude oil prices for a prolonged period of time could weaken the global economy, which may already be on the brink of recession. This would force central banks who are in a position to do so, to lower interest rates dramatically, while driving up demand for gold.
GBP/USD is under a bit of pressure at the start of the week after an impressive two-week recovery that took the exchange rate to a seven-week high.
Investing.com – Wall Street fell after a weekend attack on Saudi Arabian oil installations crippled 5% of the world’s oil supply, raising fears for the global economy and increasing the risk of war between the U.S. and Iran.
Investing.com -- Gold prices stabilized around $1,510 an ounce on Monday after the attacks on Saudi Arabian oil installations at the weekend triggered a flight to safety in global financial markets that benefited almost all haven assets.
Any escalation in the tensions in the region will send the USD/JPY sharply lower. However, if calm breaks out and crude oil prices return to last week’s levels then look for further upside action in the Dollar/Yen.
In my opinion, the RBA came across as a touch more optimistic when it left interest rates on hold earlier in the month. Although I expect at least one more rate cut before the end of the year, the minutes may emphasize patience, while mentioning the need for more fiscal help for the economy from the government.
It was a hot monetary policy meeting yesterday. Faced with slow inflation and bleak growth, the ECB eased again, delivering a fresh stimulus package. What does it mean for the gold market?
Sluggish start to week, as NZ and Australian dollar unchanged. Chinese yuan ticks higher despite weak Chinese manufacturing, retail sales data.
Investing.com - U.S. futures pointed to a weak opening bell on Monday as oil prices spiked to their highest level since May after drone strikes hit more than half of Saudi Arabia’s oil capacity over the weekend.
Attacks on Saudi oil fields drove demand for the Yen and the Loonie as oil prices surged. Johnson is in focus later today and the GBP needs progress.
Based on the early price action and the current price at .6872, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .6868 and the 50% level at .6880. In between these two levels is the downtrending Gann angle at .6877.