Oil
Oil struggled early as the details behind China’s impressive first quarter included lackluster March industrial output. A key German investor sentiment survey also weighed on crude, as optimism for the eurozone’s largest economy remains downbeat in the coming quarters. Oil isn’t getting any good news here and that means prices could continue to hover around the $80 a barrel level, or even see a tentative dip below if sellers get some help from a strong dollar.
The initial wave of weakness WTI crude to the $80 level and that attracted buyers. The oil market should remain tight and a significant slowdown isn’t warranted given current supply drivers.
Gold
Gold was struggling for gains as the surge in Treasury yields takes a break because earnings season has investors tentatively on risk-on mode. Not much safe-haven flows are being triggered given last night’s impressive China’s GDP numbers and today’s strong earnings results from J&J and Bank of America. Gold will have its day in the sun, but it might have to wait a little while longer.
Gold is trying to hold onto the $2000 level, but critical support may come from the $1970 region.
Bitcoin
Bitcoin is back above the $30,000 level as risk appetite returns and optimism grows that new investment is coming back into the cryptoverse. Bitcoin appears like it might consolidate here, but a rally above $31,500 could open the door to some momentum trades.
One big positive development for crypto has been the 54 deals that took place in the first quarter, which just edged the 53 deals saw in fourth quarter of 2021. If confidence is back to invest in the space, that could lead to more steady flows into crypto funds.
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Ed Moya
His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.
Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.
Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.
Ed holds a BA in Economics from Rutgers University.
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