Forex Today: Crude Oil Falls Strongly to 5-Month Low

The price of crude oil has continued to fall to lower 5-month low prices due to weak Chinese economic data and demand and fears that a supply glut may be building.

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  1. Crude Oil continues to look weak, plunging sharply yesterday to a new 5-month low, with WTI trading as low as $69.13. The decline is due to a general risk-off twist in the market over the past few days, but also to fears of a supply glut and an increasing economic slowdown in China. Trend traders may be interested here on the short side.
  2. The Bank of Canada’s policy meeting yesterday produced no surprises. It left its Overnight Rate unchanged at 5% while maintaining its hawkish bias. The Loonie did not react.
  3. Yesterday’s ADP Non-Farm Employment Change forecast predicted only 103k new jobs created last month, while 131k was expected. This is more evidence of a slowing US economy.
  4. Market sentiment has turned more risk-off in recent days, boosting the US Dollar and depressing stocks, while also causing many commodities to sell off. In the Forex market, since the Tokyo open, the Japanese Yen has been the strongest major currency, while the New Zealand Dollar has been the weakest.
  5. Bitcoin is making a bullish consolidation near its recent 18-month high above $44,000. The cryptocurrency has declined within the last few hours but will remain interesting on the long side to trend traders.
  6. The Euro is relatively weak as market analysts increasingly expect rate cuts from the European Central Bank in 2024.
  7. There will be a release today of US Unemployment Claims data, which is expected to predict new claims last week of 221k.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.