- Oil.WTI has fallen despite a 8.9M draw in the DOE inventories
- Weak US housing data fails to provide USD clarity
- Bitcoin remains near record highs
The main number on oil traders radars this week has shown a large decline in the DOE inventory with a print of -8.9M released this afternoon. This reading marked the 7th consecutive weekly decline and the 9th in the past ten - the one positive print was a measly +0.1M. However the immediate reaction seen in the oil price was to the downside with Oil.WTI falling by around 50 ticks since the data was published. The reasons for this are twofold; firstly in the context of Tuesday’s API reading today’s number is fairly similar and secondly several components of the report failed to support the headline reading.
The latest data on the US housing market has come as something of a disappointment with both the starts and permits for July coming in below forecast. The US dollar is sitting towards the middle of its range against most of its major peers today with the greenback not seeing too much by the way of an adverse reaction to this release.
The Bitcoin’s rally has accelerated its spurt as of late smashing a round $4,000 which had been another psychological resistance. After making a gargantuan bullish gap at the opening of this week, the price has reversed to some extent. Either way, we’re still a long way off from a level which would close to gap entirely (it needs a move lower towards ca. $3,500).
The GBP received a boost this morning following the release of the latest labour market data which showed the unemployment rate fall to its lowest level in more than 40 years and average earnings unexpectedly pickup. However these gains have since subsided somewhat and the currency is currently back to little changed on the day.
As far as stocks are concerned there’s been more upside seen during the European session with the DE30 and US500 both in the green. The US100 is also higher and currently trading not far from a potentially key resistance at 5945. Looking ahead traders will have an eye on the minutes from the July FOMC meeting which are scheduled to be released at 7pm (BST).
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