Oil Bulls Take a Breather

By Tomasz Wisniewski|

Published: September 07 2023, 04:38 GMT+0

Oil Bulls Take a Breather

In the financial markets, Thursday brings a flurry of data and evolving trends. Starting with the economic calendar, yesterday was packed with significant releases. Australia’s GDP met expectations, and Canada’s interest rate decision held no surprises. What did turn heads was the ISM Services PMI from the U.S., which posted better-than-expected numbers at 54.5, outperforming the anticipated 52.5.

Now, moving onto today, which is traditionally a busy Thursday, we look forward to U.S. unemployment claims and Canadian Ivey PMI figures. The American trading session will cap off with a speech from Bank of Canada Governor Macklem.

On the currency front, the American Dollar, Japanese Yen, and Euro stole the spotlight as the strongest performers, whereas the British Pound struggled. Polish Złoty was an outlier, weakened considerably after the Central Bank of Poland surprisingly cut interest rates by 75 basis points amid over 10% inflation. Today, the Japanese Yen is displaying strength, while the Australian and Canadian Dollars are the laggards.

Shifting gears to the equities market, indices are signaling bearish momentum. The S&P 500 just had its worst September session and is hovering near the neckline of a head-and-shoulders pattern. Dow Jones is also skirting dangerously close to a long-term uptrend line. DAX doesn’t paint a rosier picture either, as it is heading toward a horizontal support level at 15,500 points.

Finally, in the commodities market, the narrative is quite mixed. Precious metals continue their downward spiral, a trend that has persisted through September. Conversely, oil prices remain robust. WTI and Brent are expected to undergo corrections soon, though the long-term bullish sentiment holds.

Source: https://www.axiory.com/analytics/market-news/oil-bulls-take-a-breather