A stronger Euro and gains in equities for another session helped energy values move higher yesterday. With the current tropical storm moving away from the Gulf of Mexico and rumors that Syria’s leader had been killed, which turned out to be false, the market had every reason to move lower but it held on to its gains impressively. Turning to last night’s closing levels, Brent crude closed out the session at $109.55 up $0.61. WTI crude closed at $92.20 up $0.80. Gasoil closed at $930.25 up $7.25, while UK Nat Gas closed at £54.18 up £0.03.
The Euro is holding onto yesterday’s gains and is currently trading at 1.2425 just below yesterday’s high of 1.2443. The Euro has continued to be supported after the better than expected Non-farm payroll data on Friday and the continuing threat of ECB intervention putting a virtual floor in the market. Italian GDP data out this morning along with German Factory Orders will be the main prices drivers today. Resistance is seen at 1.2473 and again at 1.2504. On the downside we draw first support at 1.2371 and again at 1.2309.
Equities closed higher in the US last night although they did close below their highs for the session. The DJIA closed at 13117.51 up 21.34 and is now at 3 month highs. The S&P closed at 1394.23 up 3.24. In Europe the DAX has moved higher once again and is trading at 6951.0 up 30.0 while the FTSE is trading at 5809.96 up 1.16. Gold is trading at 1613.60 and a support base should be formed at 1600 now while Silver is at 27.94.
In economic data today we have Italian GDP and German Factory Orders which we have already mentioned. They are followed up with UK Industrial Production and NIESR GDP data. Later on this-afternoon we have US Consumer Credit data while the Fed’s Bernanke is speaking in Washington.
For Brent crude we draw first resistance at $111.00 followed by $112.00. On the downside we draw first support at $109.00 followed by $108.00.
For Gasoil we draw first resistance at $940.00 followed by $945.00. On the downside we draw first support at $930.00 followed by $925.00.