In today’s Finance show, we offer the outlook for EUR/USD, Oil and Gold prices, with Craig Erlam, Senior Market Analyst at Oanda.
EUR/USD: Correction ahead?
Erlam notes that EUR/USD made new lows on falling momentum and has seen a strong downfall without any correction. As momentum continues to be lost, he believes we might be in for a correction higher in the euro, even as high as 1.09-1.10 area.
The theme for the EUR/USD remains bearish, the pair is expected to pull lower gradually towards 1.0450 levels, and next month’s Fed and ECB decision will be key for the pair.
West Texas Oil: Selling story
Erlam says that the downside pressure on oil prices remains and west texas might be in for a move towards the 30’s again.
He adds that the selling story for oil continues, with last week OPEC having said the same story – of an oversupplied market.
On the outlook, Erlam believes that the August lows might act as support for the oil prices.
Gold: Lower towards $1000
Gold prices trade near a very significant support level, and seeing a weekly close below this will see a move lower towards $1000, says Erlam.
The yellow metal is looking at the Fed ahead for direction.