Oil Rallies on Libya Tensions, UK PM May Pushes for New Brexit Delay

USD Retreats, Oil Rallies as Libyan Conflict Sparks Output Concerns

With not much on the economic agenda to drive the markets yesterday, the dollar traded lower against all but two of the other G10 currencies, erasing the modest gains it posted on Friday after the US jobs report, and trading even lower. The main gainers were NOK, AUD and CAD in that order, while the currencies that failed to capitalize against the greenback were the safe-havens CHF and JPY.

Brent Oil — Technical Outlook

Oil buyers have been having a really great time lately, dragging Brent oil higher, above the 70-dollar mark. For now, it seems that the commodity could continue pushing further north, at least in the short run. But before the “black gold” could make its way higher again, we may see a small correction to the downside before another leg of buying.

UK PM May Travels to Germany and France Ahead of EU Summit

Moving to the UK, the pound and the Brexit sequel, the British currency was also lower against most of the other G10 currencies. It gained slightly only against USD, CHF and JPY. With the clock ticking towards Friday, the new Brexit day, the pound remained under selling interest, with investors probably sitting on the edge of their seats in anticipation of whether EU officials will grant (or not) another extension to Article 50 at an emergency summit dedicated on Brexit, scheduled to begin tomorrow.

GBP/AUD — Technical Outlook

After GBP/AUD broke a few times below its medium-term upside support line taken from the low of December, the pair continues to trade below that line and seems to be aiming further down. But before we could start targeting lower areas, we would like to see a break below one of the key support zones.

As for the Rest Today’s Events

Apart from the discussion in the UK Parliament, and May’s talks with Merkel and Macron, the economic agenda appears very light. We only get the US JOLTs Job Openings for February, which are expected to have slowed modestly, and the API (American Petroleum Institute) weekly report on crude oil inventories, for which no forecast is ever available.

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