Trading Prices for Oil Exceed 83.50 US Dollars
Risk assets were broadly supported at the start of the Asian session by the perception that Federal Reserve Chairman Jerome Powell’s remarks from the previous evening were not too hawkish. While equities and currency markets appear to be doubting the Fed’s attitude, interest rate markets appear to have taken Powell’s remarks into account.
Supply Chain Problems Drive Up Oil Prices
Oil prices increased further as a result of supply chain interruptions brought on by earthquakes in Turkey and technical problems in Norway. Additionally, API inventory data revealed a 2.18 million barrel reduction, as opposed to the 2.18 million barrel rise that was anticipated for last week.
After a volatile US day, the currency markets have remained calm.
After a chaotic US day in which the US dollar lost ground globally, currency markets in Asia remained surprisingly calm. Currently, the benchmark 10-year note has a yield of around 3.65%.
Market Response to Biden’s State of the Union Address Was Limited
After North America had closed, US President Joe Biden gave his State of the Union address, which covered a wide range of political subjects but had little effect on markets. A clear break above or below significant moving averages might signal the start of a trend that is headed in that direction.
Important Resistance and Support Levels in Technical Analysis
In the market, the region between 82.48 and 82.72, which has several breakpoints and prior peaks, may act as substantial resistance. Support on the downside might be located at the 74.97 breakpoint.