Oil gains on rising Mid East tensions, but bulls need more to clear key offers | MarketTalk: What’s up today? | Swissqu

Show notes

Yesterday was a slow Monday. The US and the UK markets were closed, the news flow was light and the trading volumes were thin.
The barrel of US crude trades a touch below its 100-DMA. The tense geopolitical setup is supportive of further gains along with the rising US demand into summer and OPEC’s restrictive tone regarding its outlook.
Elsewhere, the European Central Bank’s (ECB) Francois Villeroy de Galau said yesterday that the ECB could lower interest rates both in June and the July meetings but the EURUSD is pushing higher at the start of this week, on the back of a broad-based weakness in the US dollar. The dollar index is preparing to test the 200-DMA support against hawkish odds. There is too much optimism that Friday’s PCE print will bring relief. So much in fact that even a softer-than-expected Bank of Japan (BoJ) core inflation this morning didn’t send the USDJPY higher.
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