Market Drivers; US Session, June 24

The recent price surge in crude oil is a result of a combination of factors, including positive demand signals from the US and escalating geopolitical tensions in the Middle East and Ukraine. Unexpected draws in U.S. oil inventories and improved gasoline demand have painted a brighter picture for crude, while the growing risk of an all-out war between Israel and Hezbollah and continued clashes between Russia and Ukraine have raised concerns about supply disruptions. WTI is a little bet below the $82 mark, trading at $81.98 per barrel at the time of writing and Brent is trading around $85.10.

Economic Data

Tuesday will reveal the latest Canadian Consumer Price Index (CPI) inflation figures on CAD traders, forecast to cool slightly for the year through May, while Australia’s CPI for the year ended in May is expected to tick upwards slightly. Australia’s Monthly CPI inflation is slated to print early Wednesday.

This week, an otherwise moderate release schedule leaves investors to drift as key data loads into the barrel for Friday. Japan’s Tokyo CPI inflation preview will kick off Friday’s upcoming data splurge, followed by German Retail Sales, UK GDP, and US PCE inflation, rounding out the capstone on the week’s economic calendar.

Currencies

The dollar extended Monday declines through the US market session, easing back as investor confidence continues to pin higher at the outset of a fresh trading week. Key US data looms ahead later in the week with a revision to first-quarter US Gross Domestic Product (GDP) growth on Thursday, with updated Personal Consumption Expenditure (PCE) Price Index inflation slated for Friday.

EUR/USD held steady in the US market session on Monday, drifting around technical levels near 1.0740 as a broad-market Greenback selloff helped Euro traders to fend off a broad miss in German sentiment surveys that dropped earlier in the day.

GBP/USD likewise stuck to its guns near 1.2690 as bullish bets remained pinned on the high side, but couldn’t stretch to make a break above the 1.2700 handle. The UK is broadly absent from the economic calendar this week, with mostly mid- to low-tier data on the offering as GBP traders wait for Friday’s UK GDP print for the first quarter.

Also Read:
High Interest Rates Still Needed to Lower Inflation, Fed official Hints

Canada ponders fresh tariffs on imports of Chinese EVs

Gold Benefits from Weaker USD Ahead of PCE Data

The Dollar Takes a Break After a Week’s Rally

Official Suggests ECB’s Policy Divergence from Fed Temporary

Noor Capital | Mohammad Hashad’s Interview on Dubai TV – June 24, 2024