WTI
Global markets saw subdued activity on Friday as escalating conflicts in the Red Sea region pushed WTI prices higher. Asian shares were impacted by the surge in oil prices, while slightly higher-than-expected U.S. inflation data failed to alter investor expectations of early and aggressive rate cuts in the U.S. and Europe.
Brent futures experienced a notable 2.0% jump, reaching $79.00 per barrel, indicating the heightened geopolitical tensions in the Red Sea. Similarly, U.S. West Texas Intermediate (WTI) crude rose by 2.1%, settling at $73.55 per barrel. The rally in oil prices was fueled by concerns surrounding the Red Sea conflicts and amplified by dovish comments from ECB President Christine Lagarde, who hinted at rate cuts if inflation reaches the 2% level.
Entry Suggestion:
Given the heightened geopolitical tensions impacting oil prices, traders might consider cautious long positions, especially if the conflict in the Red Sea escalates further. A potential entry point could be identified if prices exhibit a sustained upward trend, keeping a close eye on developments in the region.
XAUUSD
XAUUSD prices rose on Friday, driven by international strikes on Yemen that heightened fears of further escalation in the Middle East conflict. This contributed to the increased safe-haven appeal of gold. Spot gold rose by 0.3% to $2,033.89 per ounce, while U.S. gold futures saw a nearly 1% increase, reaching $2,038.00. Despite this daily gain, XAUUSD has experienced a 0.6% decline for the week.
The focus remains on heightened geopolitical tensions in the Middle East, supporting XAUUSD prices above the 50-day moving average of $2,015.
Entry Suggestion:
Given the geopolitical uncertainties and the safe-haven appeal of gold, traders may consider long positions. Potential entry points could be identified during pullbacks or consolidations, with attention to key support levels.
USDJPY:
The Japanese Yen (JPY) gained ground against the U.S. dollar for the second consecutive day on Friday, recovering from a one-month low post the U.S. consumer inflation figures. The mixed fundamental backdrop suggests caution, waiting for strong follow-through selling before placing fresh bearish bets and confirming the recent recovery from a multi-month low.
Technically, the USDJPY pair is positioned around the 145.00 psychological mark, flirting with the 50% Fibonacci retracement level of this week's move-up.
Entry Suggestion:
Given the mixed fundamental signals and technical positioning, traders might exercise caution before placing fresh bets. Waiting for clear indications of the pair's direction, either through a confirmed recovery or a breakdown, would be prudent before considering entry positions.
Summary
WTI
Global markets experienced subdued activity amid escalating conflicts in the Red Sea, causing oil prices to surge. Brent futures rose by 2.0% to $79.00 per barrel, and U.S. West Texas Intermediate (WTI) crude increased by 2.1% to $73.55 per barrel. Heightened geopolitical tensions in the Red Sea, coupled with dovish remarks from ECB President Christine Lagarde, contributed to the rally. Traders may cautiously consider long positions, closely monitoring further developments in the region.
XAUUSD
XAUUSD prices rose due to international strikes on Yemen, heightening fears of Middle East escalation. Spot XAUUSD increased by 0.3% to $2,033.89 per ounce, with U.S. gold futures rising nearly 1% to $2,038.00. Despite daily gains, XAUUSD experienced a 0.6% decline for the week. Geopolitical tensions support XAUUSD prices above the 50-day moving average of $2,015. Traders may consider long positions, watching for potential entry points during pullbacks or consolidations.
USDJPY
The Japanese Yen strengthened against the U.S. dollar for the second consecutive day, recovering from a one-month low. The USDJPY pair hovers around the 145.00 psychological mark, flirting with the 50% Fibonacci retracement level. A mixed fundamental backdrop suggests caution, advising traders to wait for clear signals before placing fresh bets. Monitoring the pair's direction and awaiting confirmed recoveries or breakdowns is prudent.
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