Summary:
- Oil prices affected by geopolitical factors
- Aussie trades lower despite better risk sentiment
- Will the Spanish IBEX close to gap to its European peers?
Oil WTI
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Create account Try a demo Download mobile app Download mobile appAfter a short-lived consolidation oil prices have come back to the bull market. This, in part, is due to the White House’s decision. Namely Donald Trump has decided to end exemptions from sanctions for countries buying Iranian crude. In the short-term this decision could undercut supply. However, Saudi Arabia has already proposed to increase its crude to compensate for a decrease of Iranian oil. While the story could be positive in the short-term for crude prices, we doubt that the longer-term rally in prices may ensue. Technically WTI oil prices keep rising and they are approaching a target stemming from the inverted head and shoulders pattern.
Source: xStation5
AUDUSD
The Aussie dollar has lost some of its momentum recently due to a series of dovish messages sent by the RBA. However, we think that expectations with regard to a rate cut look ovestated. According to Goldman Sachs better risk sentiment could lead to increased demand for the Aussie dollar. Meanwhile, iron ore prices are already hovering below $100 per ton. Technically the pair is trading nearby the important support in the form of the 23.6% retracement as well as the lower bound of the bullish channel. A breakout of 0.7140 could open the way for 0.73.
Source: xStation5
SPA35
Over the course of the recent days the Spanish IBEX has been rising quite steadily along with other stock markets. However, its performance has been weaker compared to German DAX or Italian FTSE MIB. Given that the political backdrop seems to be better in Spain than Italy one may hope that the SPA35 could take a stab at closing the gap to its peers.
Source: xStation5
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