Crude Oil rose for a second day yesterday, reversing its 5.3% decline from last week, gaining over $5 a barrel.
- The commodity reached an intraday low of $65.22 before moving back above $70 a barrel. The spike in crude oil was due to a report from the American Petroleum Institute that showed crude stockpiles fell an unexpected 6.13 million last week. The Energy Department is scheduled to release its weekly report today at 14:30 GMT.
- The GBPUSD collapsed over 100 pips ahead of the Bank of England's Minutes after rallying over 250 pips from yesterday's lows on the back of the inflation rate that unexpectedly held at 1.8% this month.
- US stocks rebounds on Tuesday after sharp losses earlier this week as better than expected results from big retailers boosted Wall Street.
- Rio Tinto is an Anglo-Australian mining company and set to release its half-year results tomorrow with earnings per share forecasted to drop lower and if realized could weigh on the stock markets.
Currency and Commodity to watch out for: GBPUSD & Oil
- The GBPUSD pivot point is at 1.6610 with a preference to enter into short positions at 1.6600
- Crude Oil pivot point is at 72.25 with a preference to enter into short positions below 72.25
Today's calendar and market movers:
- UK MPC Meeting Minutes
- US Crude Oil Inventories expected to drop to 1.1 million barrels
- US stocks rallied on Tuesday closing higher 0.9% to 1.3% on better than expected results from Home Depot, Target and Saks.
- As of 06:25 GMT the Nikkei is trading at -0.8% and the Hang Seng at 0.08%. Also, the US Futures are trading between 0.5 to 1% lower pointing to a negative open in the US markets today.