Crude oil prices remain under pressure ahead of an OPEC+ meeting later in the day. During the early session, the oil prices fell to near the weekly lows by the news that the Biden administration is considering releasing 1 million barrels of oil a day for several months from the U.S. Strategic Petroleum Reserve.
Moving ahead, oil investors and traders across the globe waiting for the OPEC+ meeting decision to get a clear picture of the oil price's long term direction. The members of the Organization of the Petroleum Exporting Countries and allies will meet to discuss a planned production increase of 432,000 barrels per day.
At its last meeting on March 2, the Organization of the Petroleum Exporting Countries (OPEC), Russia and allied producers stuck to a plan for a modest output rise in April.
US stock futures struggling to break new highs ahead of the US personal income and spending report for February, the Federal Reserve’s preferred gauge for inflation. The European shares trade slightly lower after the release of weak German macro-economic data. German retail sales reported by 0.3 percent in February, below market expectations of a 0.5 percent increase.
Crude oil futures traded near the session low. On the other hand, the EIA Petroleum Status Report showed the US crude oil inventories fell by 3.449 million barrels in the week ended March 25th, above market expectations of a 1.022-million-barrel decrease.
In the currency market, the Euro slightly reversed from the early gains following the release of weaker-than-expected German retail sales and employment data. Meanwhile, the British pound gained against the US dollar and Euro supported by strong GDP data.
The safe-haven metal reversed from the early session gains after the US dollar regains upside momentum. The metal is expected to be extra volatile today due to the month-end volatility.
On the data front, the UK reported better-than-expected latest GDP numbers. The British economy expanded 1.3% in the last quarter, stronger than initial estimates of a 1% increase, and following a downwardly revised 0.9% gain in the previous three months.
Moving ahead today, the important events to watch:
US – Initial jobless claims: GMT – 12.30
US –Personal income: GMT – 12.30
Worldwide, more than 480 million people have been confirmed infected and more than 6.11 million have died. The United States has confirmed over 79.8 million cases and has had more than 975,000 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: For today, the resistance for the pair is above 1.1180, any break over targets 1.1210/30. On the other side, the immediate support is near 1.1100 and any break will drag the pair to 1.1070.
The important levels to watch for today: Support- 1.1100 and 1.1070 Resistance- 1.1180 and 1.1230
GOLD: For today, the resistance for Gold around 1940, any break over targets 1945/50. On the other side, the immediate support near 1915 and any break will drag the metal to 1910 and 1900 levels.
The important levels to watch for today: Support- 1920 and 1912 Resistance- 1936 and 1945.
Quote of the day - “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso.