Oil Stays Elevated After Saudi Attacks, No Breakthrough in Brexit Talks

Oil Prices Remain Elevated After Attack on Saudi’s Facilities

The dollar traded higher against all the other G10 currencies on Monday and during the Asian morning Tuesday. It gained the most against NZD, AUD and EUR in that order, while the currencies against which the greenback eked out the least gains were the oil currencies CAD and NOK.

WTI Oil — Technical Outlook

The oil market had a strong rally yesterday, due to the Saudi oil refinery attacks during the weekend. From the technical side, we saw WTI oil opening with a huge gap to the upside, which automatically placed the price above its key 58.85 resistance barrier. Yesterday, the commodity ended the day in the positive territory, hitting the high near the 63.46 level. The black liquid might continue drifting further north, as global oil supply issues remain, but first we may see a small correction before another leg of buying. This is why we will stay somewhat bullish for now.

Johnson-Juncker Meeting Fails to Bear any Fruit

After gaining against all the other G10s on Friday, the pound traded in a quiet fashion yesterday, staying within a ±0.30% range against all but three of its peers. It gained more against NZD, while it underperformed by more versus USD and CAD.

GBP/AUD — Technical Outlook

After yesterday’s small correction lower, GBP/AUD has rebounded from the 1.8084 area and is now showing willingness to travel back up again. This morning, the pair is already knocking on the door of Friday’s high, which is around the 1.8200 hurdle. If we see the rate climbing above that hurdle, this would confirm a forthcoming higher high and we may then target areas last seen in the end of August. Also, let’s not forget that the pair is still running above its short-term upside support line taken from the low of July 30 th. This is why for now, we will stay cautiously-bullish.

As for Today’s Events

During the European morning, Germany’s ZEW survey for September is coming out. The current conditions index is expected to have declined to -15.0 from -13.5, while the economic sentiment index is forecast to have risen to -38.0 from -44.1.

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