Crude oil price soars as US inventories fall
The euro continued to soar in the Asian session. The currency has been on an upward trend since last week. It has risen from a low of 1.1065 to a high of 1.1210 against the USD. Today, the market will focus on key data from Europe including the German retail sales for November. The headline retail sales are expected to have grown by 0.9%. This will be a point higher than October’s growth. On an MoM basis, the sales are expected to grow by 1.0% after falling by -1.9% in October. The market will also receive preliminary CPI data from Spain.
The price of crude oil rose in the Asian session. This was in reaction to the inventories data, which was released on Friday. The numbers from EIA showed that crude oil inventories declined by more than 5.47 million barrels. This was a bigger decline than the consensus estimates of a 1.72 million decline. It was also higher than the previous week’s decline of more than 1 million barrels. The Cushing crude oil inventories declined by more than 2.93 million barrels while distillates stocks declined by more than 152k. The price of Brent crude oil has been on a strong bull run since October when it tested a low of 55.
Asian stocks were mixed while American futures continued soaring today. In China, the Shanghai and Hang Seng indexes rose by 30 and 210 points respectively. In Japan and Australia, the Nikkei and ASX declined by 158 and 40 points respectively. Meanwhile, in the United States, futures tied to the Dow and Nasdaq rose by 45 and 25 points respectively. The market will today receive the pending home sales data from the United States. The pending home sales are expected to have risen by 1.1% after falling by more than 1.7% in October.
The XBR/USD pair rose to a high of 66.98 during the Asian session. The pair is trading above the 14-day and 28-day exponential moving averages. The RSI has remained above the overbought level while the momentum indicator is above the important level of 100. The pair might continue the upward trend as it attempts to test the important resistance level of 70.
The EUR/USD pair has been on a strong upward trend after establishing a double bottom at 1.1065. The pair reached a high of 1.1210 today. The pair is trading slightly below the upper line of the Bollinger Bands while the RSI is above the overbought level. It is also trading above the Ichimoku cloud while the Chikou-Span is on the left side. The pair may continue soaring.
The USD/JPY pair declined sharply in the Asian session. The pair reached a low of 109.06. This was below the important support of 109.17. On the hourly chart, the 14-day and 28-day EMAs have made a crossover while the RSI declined to the oversold territory. The Average True Range started to rise. The pair might continue moving lower to test the 109.00 level.