Crude oil wavers after EIA and IEA warn about supply
The British pound was little changed today as traders eyed the upcoming UK GDP numbers that will come out tomorrow. Economists expect the data to show that the UK economy contracted by 8.1% in the fourth quarter because of the new surge of the coronavirus. They also expect that the industrial and manufacturing production declined in January because of the lockdowns. The currency also reacted to news that the EU rebuffed the UK's request to reset the post-brexit relationship.
The price of crude oil wavered today as bulls reacted to the latest US oil inventories numbers. The data by the Energy Information Administration showed that the total number of US inventories fell by more than 6 million barriers last week. Previously, data by the American Petroleum Institute showed that inventories declined by more than 3.5 million barrels. However, in its report yesterday, the EIA warned that the price of oil could fall back to $50.3 later this year because of the rising production in the United States. Similarly, in a report today, the International Energy Agency (IEA) said that non-OPEC suppliers will likely boost production.
Global stocks rallied today as investors looked ahead to the upcoming US stimulus package as the Senate concludes its impeachment proceedings. The Dow Jones and S&P 500 futures rose by 85 and 13 points, respectively. In Europe, the DAX and FTSE 100 indices also rose while the CAC 40 index declined. The stimulus would help global equities because it will supercharge the overall recovery. In the case of US equities, the stimulus would help them by devaluing the US dollar.
The GBP/USD pair is trading at 1.3833, which is slightly below the three-year high of 1.3865. It is also slightly above yesterday's low of 1.3800. On the four-hour chart, this price is above the important support at 1.3760 and the short and longer-term moving averages. The pair will likely remain in the current range ahead of the UK GDP data set for tomorrow.
The EUR/USD price was little changed today because of the limited news and data from the US and Europe. The pair is trading at 1.2130 that is slightly below yesterday's high of 1.2143. On the four-hour chart, the price seems to be forming a bullish flag pattern. The pair is also slightly below the important resistance level of 1.2190. Therefore, the pair may break-out higher as bulls target this resistance level.
The XTI/USD pair is trading at 58.60, which is close to its one-year high. On the four-hour chart, the pair is above the short and long-term moving averages while the Relative Strength Index (RSI) has continued rising. The price is also above the dots of the Parabolic SAR. While the uptrend will likely remain, there is also a likelihood of a pullback in the near term.