Crude Prices Bounce Higher After Recent Slide
Crude oil has reversed directions on Friday and posted gains. In the North American session, U.S. West Texas Intermediate crude oil futures are trading at $54.40, up $0.31 or 0.58% on the day. Brent crude oil futures are trading at $59.80 up $1.09 or 1.84%.
Investors Eye Key U.S. Job Reports
Traders should keep an eye on today’s U.S. employment reports. Wage growth is projected to grow by 0.3% in October, after a disappointing 0.0% reading in September. However, nonfarm payrolls are forecast to slip to just 90 thousand. This is an unusually low reading, which is being attributed to the strike at General Motors. The strike has lasted over a month and could cost the automaker some $3 billion in losses. If the upcoming employment numbers miss expectations, we could see crude prices move lower.
Fed Presses Rate Trigger (Again)
As was widely expected, the Federal Reserve lowered the benchmark rate by 25 basis points for a third straight month, putting it in a range between 1.50% and 1.75%. The rate has not been this low since May 2018. The move was intended to boost the economy, which is showing signs of a slowdown. However, the Fed was cautiously optimistic in the rate statement, as policymakers noted that the labor market “remains strong” and that the economic growth was “rising at a moderate rate”.
Crude Technical Analysis
Crude has lost close to 4.0% this week and broke below the 50-EMA on Wednesday. This is a bullish signal and could be a buying opportunity. .Below, we find support at 53.00. On the upside, there is resistance at the 58.00 level.
This article was originally posted on FX Empire
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