Crude oil slips after another rise in US active oil rigs
The price of crude oil declined in early trading as the latest numbers showed that oil rigs in the United States continued to rise last week. In total, according to Baker Hughes, the number of active rigs rose for the fourth straight week to 263. That's significantly higher than where they were earlier this year when they fell to a multi-year low of 172. The number of active rigs is important because it provides an early sign of supply from the US; the biggest oil producer in the world.
Global stocks are rising today as the market traders reflected on the stimulus deal in the US. Lawmakers in Washington agreed to a new $900 billion deal that will provide checks to individuals, funds for companies, states and local governments. Economists believe that the stimulus will be essential to help the American economy recover. They will also be essential for American companies like retailers and consumer goods.
The British pound declined in early trading as the market remained focused on Brexit. During the weekend, there was no activity, leading many to question whether the two sides will ultimately reach an agreement. Precisely, the most important outstanding issues are on fisheries and fair-trading policies. Meanwhile, the pound also declined because of the latest decision by the government to implement a new strict lockdown in reaction to the new strain of Covid-19 that is apparently 70% more transmissible than the previous versions.
The EUR/USD pair declined to a low of 1.2175 after the US stimulus deal. This price is slightly below last week’s high of 1.2270. On the four-hour chart, the accumulation/distribution indicator has started to fall while the price has moved below the 14-day and 28-day exponential moving averages in a sign that bears are prevailing. Also, the Relative Strength Index (RSI) has moved below the overbought level of 70. Therefore, the pair is likely to continue falling, with the next key target being 1.2150.
The GBP/USD pair dropped sharply today after the latest lockdowns in England. The pair is trading at 1.3350, which is lower than Friday’s close at 1.3482. On the four-hour chart, the price is along the ascending yellow trendline. It has also moved below the 14-day and 28-day exponential moving averages while the money flow index (MFI) and the on-balance volume (OBV) have moved lower. The pair will remain in an ascending trend so long as the price is above the ascending trendline.
The price of crude oil declined as traders reacted to the latest high inventory numbers. The pair is trading at 50.40, which is lower than last week’s high of 52.40. On the four-hour chart, the pair has moved below the short and medium-term moving averages. The awesome oscillator has continued to rise while the accumulation/distribution indicator has also risen. Therefore, the pair will possibly bounce back as bulls aim for the next resistance at 51.00.