Crude Oil Fundamental Analysis July 31, 2012, Forecast

Analysis and Recommendations:

Crude Oil prices were floating near its one week high levels. Brent crude was hovering near $106 a barrel while Nymex crude oil was held near $90 a barrel. Boiling geopolitical tensions in Middle-east and optimism over monetary easing kept prices near the one week high/ Crude is trading at this writing at 89.81

An action packed week ahead, the US Federal Open Market Committee’s and European Central Bank’s policy decision on Wednesday and Thursday respectively takes the center stage. The investor sentiments are likely to evolve around these two crucial events that may set a tone for the market in coming days. Following a string of weak economic indicators and sagging economic growth numbers from US, market expectations are high that the Federal Reserve may launch more aggressive measures, probably another round of quantitative easing to prop up economic growth. The advanced estimates of the US second quarter GDP and personal spending released indicated a slowdown reigniting hopes of monetary easing by the Fed. Over to the other side of Atlantic, with ECB Chairman promising to do whatever it takes to preserve Euro, the rate announcement and post announcement speech on Thursday will be highly watched out for ECB’s take. Apart from this, Chinese manufacturing PMI for July on Wednesday and US non-farm payrolls on Friday will probably be the other market movers. For the day, no major data are slated to release except for US Dallas Fed Manufacturing Activity for July.

Meanwhile, Euro Zone economic confidence data released earlier today fell, punctured by deepening worries over economic crisis in Euro Zone.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data for July 30, 2012 actual v. forecast

WEEKLY

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Upcoming Economic Events that affect the CHF, EUR and GBP

Government Bond Auctions

Date  Time  Country 

Jul 31  00:30  Japan

Jul 31  09:30  Belgium

Aug 01  09:30  Germany

Aug 01  10:00  Norway

Aug 01  13:00  US

Aug 02  08:30  Spain