Will economic optimism be spoiled?
Oil prices are on the rise again on Friday, buoyed by renewed optimism on interest rates. The fact remains that the first half of the year, at least, will be enormously challenging for the global economy but lower terminal rates and even cuts later in the year will cushion the blow and could see it outperform current expectations. That, along with the resurgence in China, will be a big plus for crude demand and could keep the price well supported.
Of course, it now has to contend with what Wall Street has to throw its way in the coming weeks. That will likely include weak earnings, bleak forecasts and potentially job loss announcements. Maybe we’ll all feel a little less hopeful if that materialises as feared which could weigh a little on oil after the recent surge.
Record highs in sight?
Gold is continuing its powerful start to the year with another small gain on Friday, breaching $1,900 in the process. It’s now right in the middle of the $1,880-$1,920 range that has been so pivotal in recent years. That could see it run into strong resistance in the coming sessions, although as yet momentum is only improving. That will give gold bulls comfort and should it hold long enough to breach the upper end of that range, it could be a very positive signal. Suddenly $2,000, even record highs, could be in sight.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.
His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.
Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
