You are here: Home > articles > Forex > US Open Preview – Oil loses ground as Russia and Saudi Arabia discuss supply increases
US Open Preview – Oil loses ground as Russia and Saudi Arabia discuss supply increases
May 25, 2018 12:26 pmVideo
Latest News
- Weekly Technical Outlook – GBPUSD, USDJPY, AUDUSD April 15, 2024
- Technical Analysis – Gold in a wait-and-see mode April 15, 2024
- UK inflation report could shift the market’s focus away from geopolitics – Preview April 15, 2024
- Gold Still Expected to Rise on Wall Street and Main Street April 15, 2024
- EUR/USD and GBP/USD: Technical analysis on April 15 April 15, 2024
- Analysis and trading tips for USD/JPY on April 15 April 15, 2024
- Analysis and trading tips for GBP/USD on April 15 April 15, 2024
- Analysis and trading tips for EUR/USD on April 15 April 15, 2024
- Hot forecast for EUR/USD on April 15, 2024 April 15, 2024
- Technical analysis of GBP/USD for April 15-20, 2024 April 15, 2024
- Technical analysis of EUR/USD for April 15-20, 2024 April 15, 2024
- Energy in Focus: What news awaits investors on Wall Street April 15, 2024
- Forecast for EUR/USD on April 15, 2024 April 15, 2024
- Forecast for GBP/USD on April 15, 2024 April 15, 2024
- Forecast for USD/JPY on April 15, 2024 April 15, 2024
- Outlook for EUR/USD on April 15. The euro is already falling for no apparent reason! April 15, 2024
- Trading plan for GBP/USD on April 15. Simple tips for beginners April 15, 2024
- Trading plan for EUR/USD on April 15. Simple tips for beginners April 15, 2024
- Euro will return to parity April 12, 2024
- Trading Signals for ETH/USD (Ethereum) for April 12-15, 2024: buy above $3,435 (3/8 Murray – 200 EMA) April 12, 2024
Here are the latest developments in global markets:
Day ahead: US durable goods orders pending; eyes on Fed speakers
A few economic releases are scheduled for the remainder of the day, with the spotlight turning to several speeches by a handful of policymakers. Political developments and updates on the trade front are also expected to attract attention in the following days.
At 1230 GMT, the US will report on new orders for durable goods for the month of April and analysts expect the measure to decline by 1.4% m/m compared to a growth of 2.6% in the previous month. Excluding transportation, though, forecasts are for an expansion of 0.5% m/m compared to a contraction of 0.1% (revised downwards from +0.1%) in March. Later at 1400 GTM, the University of Michigan will publish its final findings on US consumer confidence for May, with the number expected to come at 98.8 as it was initially released.
Besides the data, investors will keep a close eye on any geopolitical headlines. The US President, Donald Trump, decided on Thursday to cancel a planned summit with North Korea’s Kim Jong Un scheduled for June 12, due to North Korea’s recent “tremendous anger and hostility”. North Korea perhaps surprisingly responded with a measured tone, expressing instead its willingness to meet with US officials at any time. This helped turn stock markets back to the upside after a strong sell-off in the wake of the news and tempered demand for safe havens.
Trade developments will be of interest as well since fears over a global trade war have not faded yet. Although the US and China agreed to put trade frictions on hold, Trump expressed his dissatisfaction a few days after, stressing that talks with China need a “different structure”. At the same time, his request to start an investigation into automobiles imports, which would significantly affect EU companies, raised speculation that further tariff threats by the US could come in play.
Meanwhile, uncertainties around Italy’s potential fiscal reforms under the new coalition government could continue to weigh on the euro, while political conditions in Spain are likely to attract attention after sources stated that the Socialists, the biggest opposition party, were planning for a no-confidence vote against the Spanish Prime Minister, Mariano Rajoy. The announcement came after the Spanish Court delivered fines and prison sentences to Rajoy’s conservative party members over illegal practices.
In oil markets, the Baker Hughes report on the number of US oil rigs due out at 1700 GMT has the potential to move oil prices.
As for today’s public appearances, Fed Chair, Jerome Powell, will be participating in the panel discussion on “Financial Stability and Central Bank Transparency” before the Sveriges Riksbank Conference in Sweden at 1320 GMT. Elsewhere, regional Fed presidents, Raphael Bostic, Charles Evans and Robert Kaplan will be making comments before the Federal Reserve Banks of Dallas and Atlanta “Technology-Enabled Disruption: Implications for Business, Labor Markets and Monetary Policy” conference at 1545 GMT. Kaplan will be also giving closing remarks at the conference at 1830 GMT.
On Saturday, the Russian President, Vladimir Putin, will be holding a meeting with the Japanese Prime Minister, Shinzo Abe.
Related Posts: