Crude oil eases from four-month high as supply cut fears contrast with US Dollar rebound

Financial markets witness a sluggish Monday, so far, as traders struggle to justify hopes of witnessing softer interest rates amid economic fears. Adding strength to the cautious optimism is China‘s stimulus to battle the typhoon fears, as well as infuse funds into the struggling property markets. On the other hand, hawkish comments from Fed officials join the unimpressive US jobs report and cautious mood ahead of this week’s US inflation data to restrict the moves.

Even so, the US Dollar pares losses marked the late last week while NZDUSD justifies expectations of witnessing the RBNZ rate hike, backed by upbeat inflation data, scheduled for Wednesday, to lead the G10 currency buyers versus the Greenback. Following that are the AUDUSD and USDCAD while USDJPY and USDCHF justify the US Dollars strength.

Further, downbeat German industrial production and fears of downbeat UK statistics weigh on the EURUSD and GBPUSD.

It‘s worth noting that the Oil price rose to the highest level since April, which was also the yearly high, as fears of more supply cuts from Saudi Arabia and Russia joined the stimulus from China. However, fears of higher US Fed rates for longer and China’s struggle to defend economic growth prod the energy bulls afterward.

Furthermore, Gold Price remains pressured while fading the bounce off the monthly low, marked the previous day, whereas equities in the Asia-Pacific zone edge lower even if the S&P500 Futures print mild gains.

Elsewhere, BTCUSD remains pressured after a three-week downtrend but the ETHUSD prints mild gains by the press time.

Following are the latest moves of the key assets:

• Brent oil retreats from four-month high towards $86.00, mildly offered near $86.10 at the latest.

• Gold price reverses from a three-week low marked the previous day, down 0.30% intraday as we write.

• USD Index regains upside momentum after two-day downtrend, up 0.15% intraday near 102.20 by the press time.

• Wall Street benchmarks closed with minor losses while the stocks in the Asia-Pacific zone edged lower. Alternatively, equities in Europe and UK trade mixed as we write.

• BTCUSD stays pressured around $29,000 after three-week downtrend but ETHUSD print mild gains to $1,830 of late