In case you missed the announcement and are wondering what is up with the gap higher in oil prices today:
That has led WTI crude to gap higher above $80 although price has eased back a little below the key level at the moment:
There has been several attempts by the oil bulls to hold a break above $80 since December but they haven't quite managed to sustain that. The 100-day moving average (red line) had also played a role previously in denying any further upside but that level is well taken out at the moment.
Instead, it will be the region around $82.35 to $82.60 that will be one to watch in validating the next upside leg, before taking a look at the 200-day moving average (blue line) closer towards $84.10 currently.
Elsewhere, equities are a little on the softer side even if Asia is playing a bit of catch up to the Friday gains in Wall Street. S&P 500 futures are down 12 points, or 0.3%, and that is setting up for a slightly softer mood to start the new week. That said, the strong gains last week definitely sets up a bullish outlook with the S&P 500 index itself at its highest level since mid-February above 4,100.
The dollar is the leader in the major currencies space with some decent gains to be had. EUR/USD is down 0.4% to back under 1.0800 while USD/JPY is tracking closer towards its 100-day moving average (red line) again as the rebound from 130.00 continues:
USD/CAD is flattish as oil gains are helping the loonie balance things out but the gap lower saw the pair break below its own 100-day moving average before coming back up now to test the level at 1.3520.
In the bond market, we are seeing higher yields on the day as the choppy mood continues. 2-year Treasury yields are up 5 bps to 4.114% while 10-year yields are up 3 bps to 3.518% currently.
