Despite unexpectedly upbeat US jobs data, the content of the Labor Department report still disappointed the market participants. It finally convinced investors that the US Federal Reserve would hardly cut interest rates in 2023. Moreover, there is likelihood that its tightening cycle will not end with the promised two more rate increases.
Against this background, the dollar extended gains. This led to a decline in major currencies as well as other financial instruments, including oil. The asset dropped to $80 per barrel. At the same time, the dollar has entered overbought territory, which signals a possible rebound. Given that today’s macroeconomic calendar is bereft of important releases, oil prices have a chance of recovering.
The current price changes indicate a shift in market sentiment. The uptrend initiated in mid-December last year seems to be fading. Thus, if the price fixes below the 80 mark on the daily chart, the asset is expected to slide to the levels of 78 and 75. An alternative scenario suggests an upward pullback from oversold territory.
Meanwhile, gold was the hardest hit. The yellow metal fell sharply to almost $1,860 per ounce. The situation is exactly the same as in the case of other financial instruments. Apparently, gold will try to rebound to at least $1,900 per ounce within the next couple of days. Then it is likely to resume a downward movement. After all, if the Fed continues to raise interest rates, traders will shift their focus to the dollar as a safe-haven asset.
The downward scenario will be relevant in case the quote fixes below the 1,850 mark.
As for the Russian currency, it managed to avoid heavy losses and even made an attempt to strengthen. The ruble remains relatively stable due to mixed political factors. Nevertheless, a trend change in the foreign exchange market will clearly limit the ruble’s potential gains. Thus, the dollar is expected to keep trading in the range of 70 to 71 rubles, at least in the short term.

00:00 Introduction
00:31 Brent
01:34 Gold
02:18 USD/RUB
02:49 Conclusion

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