Crude oil spikes amid hopes of deal with Russia & Saudi Arabia
Jobless claims rise to a new all-time high of 6.6 mln
Gold flirts with $1600 as stocks trade higher
Stocks Rally with Oil
President Trump sent the oil market into a disarray with a tweet claiming that he has largely convinced Russia and Saudi Arabia to cut output. Stocks also rallied on the news, with the energy sector leading the way.
Trump’s tweet sent the oil markets higher by over 30% within minutes. Talks between Russia and the US seem to have gone better than those with Saudi Arabia, which is reluctant to reduce its oil output unless other nations agree to do the same.
Towards the New York open, US stock index futures gave up on the gains made overnight during the Asian and European sessions, tracking a strong rebound in oil prices. Russia and the US remain in close contact and rumours about an impeding agreement to cut production continue to circulate, but with no definitive numbers yet in place.
USD Retains a Bid
Another batch of hard data from the US painted a grim picture for the current economic situation. Jobless claims in the country rose to a new all-time high of 6.6 million after 3.3 million last Thursday.
Despite the 10 million jobs lost in only two weeks, the USD continues to be resilient and is bid all across the board. Global USD shortage continues to underpin the greenback amid an increasingly uncertain market environment.
For the time being the USD continues to buck the trend in economic data, highlighting its resilience as the global reserve currency.
Gold & Silver Flirting with Key Levels
Gold and silver recovered some ground after sliding in the beginning of the week. Gold bulls are testing the key $1,600 - $1615 into the early US hours, while silver is playing with the $14.50 level. Any decisive break above those levels however remains to be seen.
A strong US dollar continues to dominate the FX space, and is capping strong rallies in precious metals for the time being.