Oil’s rally to six-week highs has caught many by surprise given the gasoline build in peak driving season in the US and the rising US stockpiles. Craig Erlam, Senior Market Analyst at Oanda presents a detailed view on oil. He is joined by Tip TV’s Zak Mir and Mike Ingram, Strategist at BGC partners.
Erlam takes note of key technical levels in oil, and states the rally isn’t backed by fundamentals but is rather due to hope that OPEC will freeze output in September. However, OPEC is unlikely to do so, adds Erlam.
USD/CAD may have dropped due to the rally in oil prices, however, Erlam blames broad based USD selling as the reason behind the drop and adds further that the pair could revisit area around 1.26-1.2650.
Erlam also takes note of inverse head and shoulder on platinum chart.