Crude oil prices rose slightly in the Asian session, following an encouraging report from the American Petroleum Institute (API). The report showed that inventories fell by more than 4.8 million barrels in the previous week. This is a sign that demand is slowly creeping back. Just last week, data from EIA showed that inventories fell by more than 4 million barrels. EIA releases its data today, and analysts expect inventories to jump slightly by 1.1 million barrels.
The euro rose slightly in trading overnight as the market responded to the positive meeting between Angela Merkel and Emmanuel Macron. At the meeting, the two leaders agreed to raise funds to support the poorer eurozone countries such as Spain and Italy. The European Commission will raise more than EUR 540 billion Dollars by issuing bonds that are repaid by the EU budget. Germany and France are the biggest contributors to this kitty. The euro is moving today after Eurostat releases inflation data in April. Analysts expect CPI to rise 0.4% year on year and 0.3% month to month. Core CPI is expected to increase by 0.9% year on year.
The Canadian dollar rose slightly in part due to the improved environment in the oil sector. The currency responds to CPI data released by Canada’s Statistics. Analysts expect headline consumer prices to fall 0.6% month-on-month and 0.1% year-on-year. This decrease is mainly due to low energy prices. By slipping into deflation, the Bank of Canada will be under pressure to lower interest rates and possibly increase its quantitative easing program.
XBR / USD
The XBR / USD pair is trading at 34.92, which is slightly below yesterday’s high of 35.86. On the four hour chart, this price is along the 38.2% Fibonacci Retracement level. It is also below the 50-day exponentially moving average. Interestingly, the pair have formed a bullish flag pattern that appears in pink. This is an indication that the price will erupt head-on when bulls remain in control.
EUR / USD
The EUR / USD pair rose to an intraday high of 1.0944 in day trading. On the schedule, the price is above the 61.8% Fibonacci retracement level and above the short and medium term moving average. The pair has formed a bullish pennant pattern, which means the price may erupt in the upper direction when bulls try to test the previous high of 1.0975.
USD / CAD
The USD / CAD pair fell slightly ahead of the FOMC minutes and the Canadian central bank decision. The pair traded at 1.3923, which is lower than Monday’s high point of 1.4137. On the four-hour chart, the price is slightly below the 50-day and 25-day exponentially moving averages. The price seems to form a falling triangle pattern, which means it may break out on the underside.