Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Crude Oil And FX Setting The Stage For Further Stocks Growth

By FxPro Financial Services Ltd (Alexander Kuptsikevich)ForexNov 25, 2020 05:33AM ET
www.investing.com/analysis/crude-oil-and-fx-setting-the-stage-for-further-stocks-growth-200545828
Crude Oil And FX Setting The Stage For Further Stocks Growth
By FxPro Financial Services Ltd (Alexander Kuptsikevich)   |  Nov 25, 2020 05:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
1.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
+1.92%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-1.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+2.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Global markets made record highs on Wednesday morning following a rally of key US indices. Dow Jones managed to close above 30,000 for the first time in history, NASDAQ climbed above 12,000 and S&P 500 closed above 3,600 on Tuesday. We have seen slippages and short-term pullbacks near these levels since September.

So it will be interesting to see if the markets are ready to reach a new level this time. The dynamics of other markets are still indicating that the growth momentum of the markets will continue for now.

Crude Oil reached pre-lockdown levels
Crude Oil reached pre-lockdown levels


Not only has oil managed to move above the highs of August, but it has also increased its growth at an exit above $46.6 per barrel of Brent. This morning, the price of a barrel reached $48.6. These are the highs from the 6th March, before the US and European lockdowns. So, in this case, we can say that oil has managed to escape the coronavirus corridor.

The dollar index continues to siege lows of two and a half years. The rebound from 92 earlier in the week was unsustainable, as one would expect from the dollar's growth on strong macro data. EUR/USD is again flirting with 1.19 and GBP/USD with 1.3350.
EURUSD is again flirting with 1.19
EURUSD is again flirting with 1.19


Since the beginning of November, purchases in these pairs have been starting from increasingly higher levels. Although the growth impulses have previously rested on resistance, the sequence of shallow pullbacks is more likely to happen sooner rather than later. This is also an argument in favor of maintaining the momentum of buying risky assets.

The price of gold fell yesterday close to $1800, where a 200-day moving average is now situated. The recovery in market optimism has washed away the demand for gold as a refuge for capital during stock market turbulence.

Gold fell to $1800, near 200-DMA
Gold fell to $1800, near 200-DMA


This weakening of gold may be short-lived, as interest in gold is fuelled both by rising commodity market prices and abundant liquidity at extremely low government bond yields.

The FxPro Analyst Team

Crude Oil And FX Setting The Stage For Further Stocks Growth
 

Related Articles

Matthew Weller
Is The Jobs Market Finally Slowing? By Matthew Weller - Dec 01, 2022

Tomorrow brings the final jobs report before the FOMC’s highly-anticipated December meeting, where the central bank will decide between a fifth consecutive 75 basis points...

Al Brooks
EUR/USD: Bulls Need Upside Breakout Soon By Al Brooks - Dec 01, 2022

  The EUR/USD had an outside up bar yesterday, closing about the November 29 high. This is good for the bulls. However, the bulls need follow-through today. Outside bars are...

Scott Barkley
USD/CHF: Range Continuation By Scott Barkley - Dec 01, 2022

Bearish: USD/CHF is currently at 0.9422 in a channel in a range. If we can break the support here, we are looking for a continuation to the ATR target at 0.9352 with a further...

Crude Oil And FX Setting The Stage For Further Stocks Growth

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Qaisar Khan Khan
Qaisar Khan Khan Nov 26, 2020 4:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how many chance to drop oil  ?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email