The price of crude oil declined as traders continued to worry about the rising number of coronavirus cases. Brent, the international benchmark, is trading at $40.16 while West Texas Intermediate (WTI) is trading at $37.67. In Japan, the number of infections rose to the highest level since the state of emergency ended, while in the United States, the number continues to rise. More than 40,000 new cases were reported yesterday, with Arizona, Florida, and Texas being the country’s epicenters. Other states seeing a high number of infections are Arizona and Georgia. Oil prices react to these infections because they increase the likelihood of more shutdowns. Meanwhile, Chesapeake, the pioneer of the American shale industry filed for bankruptcy.
The Japanese yen eased slightly in reaction to the rising COVID-19 cases in the country and the weak retail sales numbers. Data from the Bureau of Statistics showed that retail sales declined by 12.3% in May after falling by 13.9% in April. Analysts polled by Reuters were expecting the sales to fall by 11.6%. This number, together with the flash manufacturing PMI released last week, signals that Japan is still struggling. Later today, we will receive the country’s unemployment rate data and industrial production numbers.
The British pound rose slightly as traders looked forward to the fifth round of Brexit talks that will take place in Brussels. These will be the first face-to-face talks since March. Analysts expect the talks to end without a deal because of the underlying differences between the two sides. Later today, we will receive May mortgage lending and approvals data from the Bank of England. Elsewhere, in the European Union, we will receive the business confidence, industrial, and services sentiment. We will also receive the preliminary CPI data from Germany.
EUR/USD
The EUR/USD pair rose slightly to a high of 1.1247. On the four-hour chart, the price is along with the 50-day exponential moving averages and slightly below the 100-day EMA. The RSI has been moving on an upwards and is now at 48.96. Also, the triangle pattern is nearing the tip, which means that the consolidation will continue this week as traders wait for the US NFP data and EU’s PMIs. As such, the key levels to watch in case of a breakout will be 1.1200 and 1.1300.
XBR/USD
The XBR/USD pair declined to an intraday low of 40.00 as traders reacted to the rising coronavirus cases. On the four-hour chart, the price is below the ascending white trendline and below the 50-day and 100-day exponential moving averages. The Demarker indicator has been rising. Most importantly, the price is at the right shoulder of the head and shoulders pattern. This means that the downward trend may continue as bears attempt to push it below the support at 40.
AUD/USD
The AUD/USD pair rose slightly to a high of 0.6886. On the four-hour chart, the price is moving upwards, supported by the yellow trendline, which connects the lowest points on June 15, 22, and 26. It is also along with the 50-day EMA and slightly below the 100-day EMA. The price is also forming a symmetrical triangle pattern meaning that it could see a breakout as the third quarter starts.
