Oil's Relentless Ascent. Can We Anticipate the $100 Milestone?
19 September 2023
We are inching ever closer to the key events of the week, and today's calendar does not disappoint with its bustling schedule.
To kick things off, the Monetary Policy Meeting Minutes from Australia have already made their mark. The Reserve Bank of Australia (RBA) has highlighted that further tightening may be on the cards, especially if inflation exhibits more persistence than currently anticipated. The RBA weighed the option of a rate hike but eventually leaned towards a pause, believing the case for it to be stronger. Their commitment to bringing inflation back to target within a reasonable timeframe is evident. Following these revelations, the Australian dollar has showcased resilience, posting minor gains.
In a surprising twist, the New Zealand dollar takes the crown as the strongest currency in the pack for the day. The anticipation is palpable as we await the inflation data from Canada, with the forecast suggesting a drop to 0.2% on a monthly basis, a descent from the previously reported 0.6%.
On the forex front, the EURUSD pair continues its downward trajectory within the channel down formation. The GBPCHF pair consistently exerts pressure on the horizontal support at 1.11. Not to be outdone, the EURGBP is making its presence felt with monthly highs, challenging the long-standing downtrend line.
Shifting our gaze to the indices, Monday was characterized by low volatility. Despite the quiet, the undertone remains bearish, especially in the aftermath of Friday's decline. On the other hand, commodities have been basking in the limelight. Both gold and silver enjoyed positive sessions on Friday and Monday, signaling a bullish sentiment for precious metals.
Oil's performance deserves special mention. With new long-term highs being achieved almost daily, Brent crude is on a trajectory towards the $100 resistance, while WTI crude has its sights set on the $94 resistance mark.