Oil slumps as OPEC+ delays meeting, Bitcoin higher following CZ’s resignation
Macro Scenes:
Wall Street gains: US stocks gained on a broad-based rally ahead of the Thanksgiving holiday. Energy was the only sector that finished lower in the S&P 500 due to a slump in crude prices. USD strengthened: The USD strengthened against all the other G-10 currencies as investors may have reassessed the Fed’s policy path. The US Treasury yields climbed slightly following a lower-than-expected weekly jobless claim data. Gold pulled back from 2,000: The precious metal was pressed by a higher US dollar and US bond yields. Gold faced key resistance of 2,000, retreating from a one-month high. Crude oil fell: Crude futures finished about 1% lower after slumping 5% due to a delay of the OPEC + meeting. The meeting is pushed back for one week to be held on 30 November. The cartel’s leader, Saudi Arabic, was not satisfied with other members’ output levels, which may signal disagreement about further production cuts among members. Bitcoin popped: Bitcoin rose to close to the highest level since April 2022 after Binance’s former CEO Chang Peng Zhao resigned as part of the settlement with the US prosecutors. The regulatory event may have caused the relief rally. Asian markets to open mixed: China has included two indebted developers, Country Garden and Sino-Ocean, in its draft white list, which may receive the government’s financial support. The Hang Seng Index was flat on Wednesday and set to open lower, with futures down 0 32%, and the ASX 200 futures fell 0.18%. Nikkei 225 futures were up 0.92%.Chart of the Day:
USD/JPY, daily – The pair faces key resistance of the 50-day moving average at about 149.55. While the long uptrend is intact, downside pressure can still be dominated and potentially send it to test the channel support again in a near term.
Source: CMC Markets as of 23 November 2023