The Crude Oil market on the D1 time frame was in an extended down trend until 26 September when a last lower bottom was recorded at 76.13. Bulls found the price attractive at those levels and demand started overcoming supply.  
 
A closer look at the Momentum Oscillator reveals a positive divergence between points “a” and “b” when comparing the bottoms at 83.74 and 76.13. This could have alerted technical traders that the downtrend might be losing momentum.  
 

Sterling remains in the market headlines for all the wrong reasons thanks to growing uncertainty and confusion from not only the Bank of England but the UK government.

The past few days have been rocky for gold.

After briefly punching above the 50-day Simple Moving Average early last week, bears hijacked the driving seat as multiple fundamental forces dimmed the metal’s allure. Despite gaining over 1% since the start of October, prices are back below the psychological $1700 level with the path of least resistance pointing south.

Markets have of late dared to revive bets over a “dovish pivot” by the Fed, which has helped gold prices recover back above $1700 this week.

However, whether such a recovery can be sustained over the immediate term may all boil down to the upcoming US inflation data release (and also the US jobs report due later today – Friday, October 7th).

A sense of caution lingered across financial markets on Thursday as investors weighed the impact of rising oil prices on economic growth. Anticipation ahead of the US jobs report on Friday added to the tense atmosphere with market players adopting a guarded approach toward riskier assets. In the equity space, stocks in Europe edged higher as global markets searched for normality after the recent volatility.

OPEC+ will be holding an in-person meeting in Vienna today, and is set to announce a major decision that’s likely to reverberate across global oil markets.

Given the forward-looking nature of markets, oil benchmarks have climbed over the past week in anticipation of today’s keenly-awaited meeting.

European markets flashed green on Tuesday, building on the previous session’s strong start to the final quarter of the year, as weakening US economic data raised hopes of a less aggressive stance by the Fed on rates. US futures are pointing to a higher open with the positive momentum from Europe potentially finding its way into Wall Street. Global equities could be offered further support if soft economic data fuels speculation around doves infiltrating central banks across the globe.

The mighty dollar has been an unstoppable force this year, crushing all obstacles with the destructive force of a wrecking ball. G10 currencies were practically pulverized by the greenback’s dominance with the pound shedding roughly 17% and yen over 20% YTD.

We’re about to enter the final quarter of what’s already been a tumultuous year for global financial markets.

And as it’s been for most of the year, it’s set to be yet another dollar-centric week for global markets.

Global investors and traders are awaiting the next US jobs report as well as potential policy clues by Fed officials who are scheduled to make public comments over the coming week:

Last month, we posed the question: “Is the worst over for US stocks?”

Answer: apparently not.