A shift in investor sentiment in the foreign exchange market had an impact on the energy market as well. Instead of pulling back, oil remained unchanged. That indicates that its downside potential is exhausted, at least in the short term.
This alone indicates that the asset has every chance of gaining value. Moreover, the report from the US Labor Department to be published today is expected to be downbeat. That is, the dollar will most likely lose ground, thus allowing oil prices to rebound.
In the meantime, Brent crude oil futures keep trading downwards. The quote has hit a new one-week low. If the downtrend remains intact, with speculators ignoring an oversold signal in short-term time frames, the benchmark will head towards the level of $80 per barrel.
Speaking of the yellow metal, yesterday we considered two possible scenarios for its further movement. And one of our predictions assuming a sharp drop in gold prices proved to be accurate.
The quote is still under pressure from fundamental factors. A recent rise to a new local high was followed by a slide of about 2%. As a result, the asset returned below the level of 1,920. At the same time, market sentiment remained bullish. If the price returns above 1,950, a subsequent increase in the volume of long positions may bring the metal up to the 2,000 mark. An alternative scenario suggesting a deeper correction will be considered in case the price fixes below the level of 1,900 on the daily chart.
Indeed, the outcome of the ECB’s meeting forced investors to reassess their long-term strategies. This in turn resulted in a trend change in the foreign exchange and gold markets. However, today gold seems to be bouncing up amid a widely expected decline in the dollar following the upcoming report from the Labor Department.
Meanwhile, the ruble halted its active moves shown even before the Fed’s meeting and stood still again. Thus, the dollar/ruble pair continues drifting around the level of 70, which signals a possible rally. The volume of long dollar positions may increase if the price consolidates above the level of 71. Until then, the pair is likely to remain range-bound.
Even yesterday's meeting of the European Central Bank that stirred up the market, had no impact on the Russian currency. The ruble resumed a sideways trend, coming under pressure from political factors. Firstly, the market is waiting for the reaction of Western countries to the clarified decree banning oil supplies to countries that abide by the price cap. Now these nations cannot be the ultimate recipients of Russian oil, even through resale by third countries.
Secondly, European Union leaders have agreed to impose new sanctions on Russia. Apparently, in response to the above measure. Against this background, traders do not want to take risks. The market has taken a wait-and-see approach. However, under such circumstances when the market is in limbo, the ruble tends to suffer losses. In other words, the Russian currency is expected to weaken in the short term. That’s all for now. We wish you profitable deals. See you on our channel with a new video in a couple of hours.

00:00 Introduction
00:21 The Factor Leading to Higher Oil Prices
00:40 Brent
01:02 Gold
02:01 ECB meeting results and gold prices
02:27 USD/RUB
02:55 ECB Management Meeting and Ruble
03:59 Conclusion

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