Crude oil stopped falling as risky assets got pardoned by Biden’s valuation. WTI high? -by Ecork

Crude Oil, US Dollar, Bullard, RBA, Lowe’s, Australian Dollar, Canadian Dollar, Japanese Yen – Talking Points

  • raw oPrices il find support with Risky assets stabilize after recent chaos
  • APaC stocks move up, related to commodities and linked coins
  • Central bank speakers will be the focus of the future. WTI . will Resuming its uptrend?

Crude Oil benefited from a more upbeat mood after US President Joe Biden said a recession is not inevitable. West Texas Intermediate crude futures are near $111.50 per barrel, while Brent is near $115.50 per barrel.

Other commodity markets, which were choppy at the start of the week, are better off today.

Risky assets in general were on the rise with all the Asia Pacific stocks appearing in the green. All major indices in Japan are up over 2%. US yields from today’s long weekend and futures markets are pointing to a positive start to their week.

US Treasury yields are rising again after that St. Louis Federal Reserve Chairman James Bullard He said inflation expectations could become unrestricted unless the Fed takes credible action

The It was a busy RBA day With the release of a revision of the Yield Curve Control (YCC) program that collapsed last November, Governor Philip Lowe gave a speech and the minutes of the June meeting were released.

RBA Governor Lowe said a decision between 25 or 50 basis points was discussed at the June meeting. He added that he believes that a similar discussion will take place at the July meeting, which effectively rules out the possibility of a jumbo rate hike of 65 basis points.

With the current cash rate at 0.85%, this means that the bank is not concerned about bringing the cash rate back to multiples of 0.25%.

The benchmark Australian 3-year government bond yield remained near 3.70% after starting the year at 1.00%.

The Australian and Canadian dollars were slightly stronger during the Asian session, while the US dollar and Japanese yen were softer.

Looking ahead, the focus will be on central bank speakers with the Bank of England, European Central Bank and Federal Reserve all represented.

You can view the full economic calendar over here.

Structural factors of crude oil

WTI Crude Oil continues to show a relatively high bounce. Rollback occurs when a futures contract expires at a higher price than the contract after which it will expire.

This could indicate that the market is paying a premium to get immediate delivery rather than having to wait, signaling a possible desperation to meet demand.

At the same time, volatility is relatively weak, which indicates the market’s comfort with the current level of crude oil.

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— By Daniel McCarthy, Strategist for

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