WTI’s recovery stalls below $89.00 with the US dollar surging
- WTI's rebound from $85.30 stalls below $89.00.
- Crude prices' recovery loses strength with the US dollar surging.
- Bright US data dampen hopes of a Fed pivot in December.
The solid recovery in oil prices witnessed during Tuesday’s Asian And European sessions, has lost traction during the US session, weighed by a sudden USD rally. WTI futures have been capped at $89.40 after having bounced up from $85.30 lows on Monday.
The US dollar jumps on bright US data
A set of better-than-expected US macroeconomic figures released earlier on Tuesday have boosted confidence in the strength of the US economy, leaving clearing the path for the Fed to continue with its aggressive tightening path. This has sent the US dollar higher, thus weighing on crude prices.
US manufacturing activity has posted a positive surprise. The ISM PMI slowed down to 50.2 in October, better than the 50 reading expected and the S&P PMI confirmed the good news. October's 50.4 reading reveals that sector activity expanded, against the expectations of a moderate contraction, at 49.9.
Beyond that, the JOLTS job openings have shown an increase to 10.7 million vacancies in September, up from 10.2 million in August, instead of the decline to 10 million anticipated by the experts. These figures demonstrate the tight conditions of the US labor market, despite the Fed’s efforts to cool it off in order to curb inflation.
Previously, Oil prices had rallied more than 3% in a risk-on session amid growing speculation pointing out to a Fed pivot in December. The federal funds futures market had priced in a 57% chance of a 0.50% rate hike in December, which sent the USD tumbling across the board during the Asian and European sessions.
Technical levels to watch
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.