A weaker dollar boosts oil and gold; Bitcoin remains heavy

[ad_1]

Oil finds tentative bottom on improving demand optimism Gold stuck in tight range; hovering around $2,000, Bitcoin traders remain in regulatory wait-and-see mode

Oil

Crude prices rebounded after a better-than-expected German sentiment report and as energy traders began to see Europe struggling to reliably replace supplies of Russian crude. Oil’s tough week last week had too many holes in Crude’s near-term outlook, but some of that pessimism could fade this week if earnings continue to impress and the US quarter posts a strong reading of 2. .0% or better with first quarter GDP.

Earlier in the day, a few tankers gave up after waiting nearly a month for Iraqi Kurdish oil. It’s a reminder that the oil market will remain sensitive to replacing the sour crude it was getting from Russia. Not all grades of rough are created equal and can easily be interchanged.

WTI Crude is also getting a boost from the weaker Dollar and this trade could continue for most of the year as the Fed will likely be priced in to offer more rate cuts than the other major central banks.

Gold

Gold is trying to get back into place above the $2000/oz level. The weaker dollar is helping to push bullion higher as investors begin to grow more confident that the Fed will need to make further rate cuts next year. Wall Street sees something breaking and it allows the Fed to shift gears from its inflation-fighting mode.

Gold will benefit from safe-haven flows and continued momentum as Treasury yields fall as bets on the Fed’s rate cut increase. The bullish outlook for gold is based on the degree of risk that is on the table: earnings risk, slowing lending, financial stability issues and persistent inflation.

Bitcoin

Bitcoin remains heavy until investors get clarity on the US crypto regulatory path. Despite the weakening US dollar and falling Treasury yields, cryptos are temporarily persona non grata for speculators. Investment in crypto is seeing exits and momentum or general interest in the space has stalled. Until crypto traders see a clear positive development on the regulatory side, Bitcoin may remain stuck in a consolidation, currently trying to find the lower bounds of its trading range.

The content is for general informational purposes only. It is not investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you wish to reproduce or redistribute any content found on MarketPulse, an award-winning global forex, commodity and index news and analysis service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at [email protected]. Visit https://www.marketpulse.com/ to learn more about the pace of global markets. 2023 OANDA Business Information & Services Inc.

With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-the-minute cross-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. . His particular expertise covers a wide range of asset classes, including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of the major forex brokerages, research teams and information services on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His opinions are endorsed by the world’s most renowned news agencies including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

[ad_2]