Bullish tendencies for oil ease
Oil market bulls continued to dominate the commodity’s prices yesterday and during today’s Asian session yet tended to correct a bit lower in today’s European session. The US-Iranian conflict continues to keep oil traders on the edge of their seat, and the contraction of oil production by Iraq is particularly worrisome for the supply side of international oil market. Any further escalation in the war, including but not necessarily being limited to a full closure of the Straits of Hormuz, or a prolongment of the war, could intensify market worries in the oil market.
Xlence Research Team opinion
We continue to view any intensification of the market’s worries for the war in Iran as having a possibly bullish effect on oil prices, on the flip side, a possible easing of the market’s worries could weigh on oil prices.
The USD is now correcting lower in the FX market
Despite the rally of the USD in the FX market yesterday, we note a correction lower in today’s Asian and European sessions. The market worries for the US CPI rates accelerating given the rise of oil prices, tend to lead also to expectations for the Fed to keep rates unchanged for longer, which is supportive for the USD. In today’s American session, we expect the ADP national employment figure for February to be closely watched, given also the release of the US employment report for the same month on Friday. Also the release of the ISM services PMI figure for February could be closely watched today.
Xlence Research Team opinion
Should we see market worries for inflationary pressures in the US economy intensifying and possibly be accompanied by a higher reading of the ADP figure, we may see the USD getting some support in the FX market.
Bitcoin remains stable while gold retreats
Bitcoin’s price remains stable in the crypto market unaffected by the mayhem in other markets. Yet on the other hand gold’s price retreated, as safe haven flows seemed no longer sufficient to overcome the strengthening of the USD and worries for the Fed’s intentions.
Xlence Research Team opinion
For the time being we tend to maintain a bias for Bitcoin’s sideways motion to continue, while for gold, given the interruption of the precious metal’s upward movement, we switch our bullish outlook for the precious metal in favour of a stabilisation, yet we may see bullish tendencies re-emerging.
US equities stabilise after yesterday’s drop
US equities indexes were on the retreat yesterday yet tended to stabilise somewhat in today’s Asian and European sessions. Market uncertainty seems to continue to weigh on US equities for the time being, yet at the same time stock market bears seem to pause and give some time to market participants to weigh the pros and cons of the situation. We also note the meeting of US mega cap tech companies with US President Trump at the White House, which is to discuss the role of data centers in increasing the power costs for average Americans, while we also note that the it’s the last day for Apple’s event.
Xlence Research Team opinion
Should we see market worries intensifying, we may see a more cautious market approach emerging and US equities being on the retreat. On the flip side, should we see market worries easing, we may see US stock markets rising somewhat yet the US-Iranian war may cap the possible gains.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
