( UKOIL ) Oil rallies on geo-political risks
( UKOIL ) Oil prices remained bullish as geo-political tensions continued to grow. Iran’s stance on a potential conflict with Donald Trump sent oil prices across the board higher. After hitting multi-month highs, supply disruptions could push the price to an extension above 71.00 if it can confirm a breakout above the psychological level of 70.00. On the flip side, 65.00 is a critical floor to prevent a steep sell-off.
EURUSD switches sentiment
The dollar entered this year on a bearish note, following a dramatic sell-off in most of January. With the Fed weighing up how many rate cuts it will make this year, this week’s employment data needs to exceed expectations before a decisive decision is made. The path of Gold could be a catalyst after last week’s reversal, which saw $500 shaved off the yellow metal. After hitting resistance at 1.2050, the price could look for support around 1.1800.
SPX 500 falls from peak
The S&P struggled to push higher after last week’s earnings call for Microsoft. An 11% slide in one session capped the worst trading day for the company in over five years, as the cloud growth took a step back. With the recent Fed comments about inflation targets, traders will feel anxious about the earnings this week, including Alphabet and Amazon. 5600 would be the first support should the slide continue, with 6950 as a potential target higher.
