The price of crude oil rose slightly in the Asian session after a report yesterday said that Russia was willing to join Saudi Arabia in cuts. During an interview in Argentina, Deputy Foreign Minister of the Russian Federation, Sergei Ryabkov said that the country wanted predictability and smooth price dynamics. He added that no one was interested in oversupply. Soon afterwards, Trump announced that he was cancelling a meeting with Russia’s Putin at the G20 summit. This was pinned on Russia’s refusal to release Ukraine navy ships and sailors seized in a maritime confrontation last Sunday. With the price of oil so low, it’s likely that Russia and Saudi Arabia will work on how to boost its price.
The yen was little moved in overnight trading even after disappointing data. The jobs/applications ratio moved to 1.62, which was lower than September’s 1.64. The consensus estimate was 1.65. Consumer prices in Tokyo rose by 0.8%, which was worse than the 1.1% that traders were expecting. The unemployment rate rose to 2.4% from September’s 2.3%. On a positive note, the country’s industrial production number rose by 2.9%. This was higher than the consensus estimate of 1.2%.
Asian stocks were positive after reports showed that the United States and China were eying a trade deal. Officials of both countries have discussed holding additional talks in December if the two leaders agree on a truce in Argentina. Officials said that China’s lead trade negotiator, Liu He would lead a delegation of 30 officials to Washington to hammer a deal on December 12. However, it is important to note that similar talks have stalled in the past.
The USD/CAD pair was slightly unchanged overnight as traders wait for the GDP numbers, which will be released later today. Over the past two months, the pair has been moving in an upward channel as shown below. It is now at the middle level of the channel, with the price being along the 30 and 15-day EMA. At 54, the RSI remains supportive of this price action. This trend could change depending on today’s GDP numbers.
The EUR/USD pair remained near yesterday’s high of 1.1395. This is after the mixed jobless claims numbers released yesterday from the United States. Over the past two months, the pair has moved lower from 1.1815 to a low of 1.1215. The past few days has seen plenty of indecision which has led to an increase in volatility. The Average True Range has been moving up, a sign of the ongoing volatility. This pattern will likely continue as traders get more information from the Fed about next year’s rate hikes.
After falling below $50 yesterday, the price of crude oil jumped slightly overnight. The XTI/USD pair is now trading at 51.64. The RSI has moved from below 29 and is currently at 50. There are also signs that the short-term and long-term EMAs are crossing one another. News over the coming days could lift the prices.