- Crude oil retraces the recent gains as investors adopt caution ahead of Fed decision.
- Investors await Chinese PMI data; seeking cues on world's leading crude importer’s economic scenario.
- Upward 10-year US Treasury yield could provide support in underpinning the US Dollar.
Western Texas Intermediate (WTI) trades lower near $83.90 per barrel during the European session on Monday. Investors are approaching the upcoming US Federal Reserve policy meeting and China's manufacturing data with caution, leading to a decline in crude oil prices. This cautious stance is overshadowing the support previously provided by tensions in the Middle East.
Crude oil prices saw an increase on Friday as Israel expanded ground operations in Gaza. This has raised concerns about the potential widening of the conflict in a region responsible for a third of global oil production.
Looking at China, the upcoming release of manufacturing and services PMI data for October is eagerly awaited. Investors seek for signals indicating stabilization in the world's leading crude importer's economy. Market participants are particularly interested in gauging whether supportive measures implemented by Beijing have contributed to an improvement in Oil demand.
The US Dollar (USD) encounters resistance as market expectations lean towards the likelihood of the US Federal Reserve (Fed) maintaining interest rates at 5.5% in the upcoming Wednesday meeting. However, the US Dollar Index (DXY) shows positive movement post lukewarm intraday performance during the Asian session, hovering around 106.70 as of now.
The 10-year US Bond experiences a rebound, reaching 4.85% at the moment, providing support to the Greenback. Additionally, investors will closely monitor key indicators such as the US ADP Employment Change and the ISM Manufacturing PMI for October.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold holds the record run to near $3,500
Gold price retreats slightly from near $3,500, or a fresh all-time highs in the early European session on Tuesday as bulls pause for a breather amid overbought conditions on short-term charts. Any meaningful corrective downfall, however, still seems elusive on sustained US Dollar weakness.
EUR/USD battles 1.1500 as US Dollar looks to stabilize
EUR/USD is battling 1.1500 in the European session on Tuesday. The pair loses traction as the US Dollar finds its feet even as investors remain wary of the US financial stability amid Trump's attacks on Fed Chair Powell. Speeches from ECB and Fed officials are on the radar.
GBP/USD reverses below 1.3400 as US Dollar pauses decline
GBP/USD is back below the 1.3400 mark in the European trading hours on Tuesday, feeling the heat from the pause in the US Dollar decline. But the pair's further dowside appears limited as fears of a US economic slowdown and concerns about the Fed's independence will continue to remain a headwind for the Greenback.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.