Oil Has Seen an Upturn in Late Trade

Oil Has Seen an Upturn in Late Trade

23 May 2016, 17:09
Roberto Jacobs

Oil Has Seen an Upturn in Late Trade

After some early weakness, the bullish USD tone was back on track, but we are seeing some notable resistance which can prompt a short term squeeze.

This has been threatening over recent sessions, but despite some softness in the US manufacturing PMIs, the market seems loathe to give up on notable levels in place, with USD/CAD still eyeing 1.3200 – topped out at 1.3175 earlier on.

In EUR/USD, we continue to see the recent 1.1180 level being pressured, but having held 1.1260, we are still finding bids coming with EUR/GBP sales adding to the pressure. Euro zone PMIs were also soft today, but the equivalent stats in Germany were healthy enough.

Elsewhere, AUD/USD also dipped under .7200, but as reported last week, sizeable bids have been reported from .7200-.7180.

NZD/USD is also seeing support coming in around .6750 or so, with steady equity markets aiding the latter 2 pairings.

Oil has seen an upturn in late trade, and this should also prove USD restrictive in the near term. Fed speakers earlier in the day offered little new perspective – non voter Williams still advocating 2-3 hikes this year.


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