Crude oil prices rose after data from the US showed that inventories were falling. According to the Energy Information Administration (EIA), the number of stocks dropped by more than 4.9 million barrels in the previous week. This was the biggest retreat since March. Analysts expected stocks to rise by 1.1 million barrels. Cushing crude oil stocks fell by more than 5.5 million barrels, while weekly distillate stocks rose by more than 3.8 million. These figures show that oil demand is creeping back into the United States as more people begin to work back.
The US dollar was slightly strengthened after the Federal Reserve released its minutes for the previous meeting. In the protocol, Fed officials said the disease poses a serious threat to the economy. They also agreed that the effects of the pandemic created an extraordinary amount of uncertainty and significant risks to the market. At the meeting, they left interest rates unchanged near zero and increased the pace of asset purchases. In his testimony Tuesday, Jerome Powell said the bank would do whatever it took to dampen the US economy from the current pandemic.
The focus today will be on flash-making PMI data that will be released by Markit. Analysts expect the data to show that manufacturing and service activities contract. But they expect the activity to show some improvement in May. For example, they expect the German manufacturing PMI to jump from the previous 34.5 to 39.2. In the euro zone, they expect it to improve from the previous 33.4 to 38.0. Other top news will be the Turkish interest rate decision, the US unemployment claims, the Philadelphia Fed manufacturing index and the US’s existing home sales data.
XBR / USD
The XBR / USD rose to an intraday high of 36.50, which is the highest it has been since April 7. On the four-hour chart, the price is above the 25-day and 50-day exponential moving averages. It is also slightly above 38.2% Fibonacci Retracement and above the bullish pennant pattern. The pair may continue to rise as bulls try to test the 50% retracement at. 39.38.
EUR / USD
The EUR / USD pair fell from the previous high point 1.0998 to a low of 1.0956. On the schedule, the price is slightly below the 25-day exponentially moving average and above the 61.8% Fibonacci Retracement level. The price also formed a bearish recovery pattern yesterday and is under the important support of 1.0975. Therefore, the couple may continue to fall ahead of production PMI and U.S. information on unemployment claims.
AUD / USD
The AUD / USD pair fell to an intraday low of 0.6553 as Australia and China traded power continued. On the schedule, the price has just crossed the 25-day exponentially moving average while RSI has fallen. At the same time, the price has entered the Ichimoku cloud. This means that the price is likely to continue to fall when bears are aimed at the lower side of the cloud, which is also the important support of 0.6500.