Brent oil tests $94 support on Middle East de-escalation hopes, while the New Zealand dollar rallies above 0.56 following weekend election projections.
Brent is testing the recent lows around $94/barrel at the 100 & 200 daily moving averages, with a technical break opening the $80-$90 region. De-escalation is driving the move: Trump called renewed strikes on Iran highly unlikely, unconfirmed reports say Iran dropped the Hormuz transit-fee demand and agreed to an Iraqi proposal to end the war. The Qatari PM denied the headline, which argues against an immediate collapse.
The New Zealand dollar rallied after the weekend election, moving from YtD lows below 0.5550 to above 0.56, as the center-right coalition is projected to win 67 of 135 seats. A Labour-led government with more expansive fiscal policy was seen as the alternative risk. Final results are only confirmed by the end of the month, and National itself lost seats, limiting conviction.
Nvidia opens down 5-6% after its CEO suddenly became the main figure in a potential spy scandal, dragging on otherwise broad-based Wall Street gains. The headline-driven nature of the story and the strong overall market tone (Nasdaq +1.9%) limit the downside assessment.
Dutch TTF is about to lose its 50-day moving average near €82/MWh as part of the broader energy correction that started in November and accelerated after the midterm sweep raised hopes of a faster diplomatic resolution to the conflict. Falling energy prices are a direct price-negative for the contract.
The dollar trades defensively as falling energy prices hurt the greenback's appeal, lifting EUR/USD from as low as 1.114 back to the 1.12 big figure while DXY erased much of Friday's gains to ~101.8. However, the pair remains locked in a narrow sideways trading range, capping the bullish case.
Brent crude oil is testing $94 per barrel as de-escalation hopes in the Middle East weigh on energy prices. Meanwhile, the New Zealand dollar climbed above 0.56 following a weekend election that projects a center-right coalition victory. Wall Street opened higher, though Nvidia shares slipped 5-6% amid reports involving its CEO in a potential spy scandal.
Hopes for a quicker diplomatic end to the conflict grew after Trump said renewed strikes on Iran were highly unlikely and unconfirmed reports suggested Iran dropped a transit-fee demand and backed an Iraqi peace proposal, even though the Qatari PM denied that headline.
The article flags ~$94 as the key support coinciding with the 100 & 200 daily moving averages; a break opens the $80-$90 region, with $70 as the post-war low.
The weekend election is expected to keep the center-right coalition in power with 67 of 135 seats, while the feared alternative of a Labour-led government with looser fiscal policy did not materialize.
No. It is a projection and final results will only be confirmed by the end of the month.
Its CEO suddenly became the central figure in a potential spy scandal, and the stock opened down 5-6% even as the Nasdaq gained 1.9%.
The same de-escalation hopes hitting oil: speculation about a quicker diplomatic resolve to the conflict after the midterms and Trump's weekend remarks, with TTF on the verge of losing its 50-day moving average near €82/MWh.
The article attributes the dollar's defensive tone especially to the slide in energy prices, which hurts the greenback's appeal, letting EUR/USD climb back to the 1.12 big figure.
Tomorrow's October US CPI release, which the article flags as this week's focus for rates traders.