With slumping prices in the commodity markets, Michael Hewson takes a look at the potential for a bounce in crude oil futures and the likelihood of ECB QE being announced on Thursday.
- Speculation over additional stimulus from the ECB and the PBoC has boosted US stocks and the DAX, though Michael believes that ECB QE remains unlikely at the this stage
- Some are calling for Brent crude to drop to $40 per barrel, though support remains at $67.50 and we saw a key reversal pattern which may provide a short-term base
- USD/JPY may struggle for further gains as it targets ¥120 as we reamin hugely above its 200DMA, with US jobs data on Friday expected to be key
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Video content by Michael Hewson of CMC Markets.