- WTI crude oil back below $30/barrel
- Ecuador oil minister: Some OPEC members calling for emergency meeting
The lack of top-tier economic releases during the U.S. session left forex traders to take their cues mostly from commodity prices and market sentiment once more, and it looks like the risk-off vibes are back!
Crude oil resuming its slide? – Just after staging a strong rebound last week, Black Crack’s rallies lost steam and signaled yet another leg lower. WTI crude oil turned upon hitting the resistance around $32/barrel and is now trading below $30/barrel once more.
Because of that, several members of the OPEC oil cartel started calling for an emergency meeting again in order to discuss a possible production cut which might keep prices afloat. Saudi Arabia, however, remained stubborn and even announced that it will be maintaining its energy investment plans.
Positioning ahead of central bank events – Forex junkies also took advantage of the empty economic calendar to make the necessary adjustments ahead of this week’s trifecta of central bank decisions.
The FOMC, RBNZ, and BOJ will all be announcing their monetary policy decisions over the next few days, and most analysts are expecting to hear words of caution. Some are even saying that the BOJ decision might be a close call, as Governor Kuroda has previously hinted that they might expand their stimulus program.
Major Currency Movers:
USD – The Greenback brought sexy back when risk aversion popped its head back in the forex market. GBP/USD fell back below the 1.4300 handle to a low of 1.4205, USD/CAD popped up to test the resistance at 1.4300, AUD/USD slid from the .7000 levels to a low of .6934, and NZD/USD is currently testing the .6450 minor psychological support.
JPY – The lower-yielding Japanese yen also managed to advance against its higher-yielding forex peers, although speculations of further BOJ easing kept its gains limited.
USD/JPY extended its rally to 118.85 before retreating to 118.12, EUR/JPY tried to break past the 128.50 area but ended up falling back to 128.00, GBP/JPY tumbled more than a hundred pips to the 168.00 levels, and AUD/JPY fell to a low of 81.88.
- 2:00 am GMT: New Zealand credit card spending. This is considered a leading indicator of consumer spending, fellas!
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!