By FX Empire.com
Crude oil prices jumped after the EIA report showed crude oil inventories fell below expectations last week after trading within a limited range throughout Wednesday’s session, where optimism that EU leaders will announce strong measures next week at the EU summit to ease the euro zone debt crisis was somewhat overshadowed by Moody’s downgrade to Spain’s credit rating.
However, crude oil prices received strong bullish momentum after the EIA report, which showed inventories fell by 4.7 million barrels last week, opposite to expectations of an increase by 2.0 million barrels, and the prior increase of 1.3 million barrels.
The outlook for crude oil though has become highly uncertain, since the sentiment in markets has become the major market mover for crude oil prices, but overall, we still expect crude oil prices to remain under pressure, since signs of weak global growth continue to emerge, and that should weigh down on demand for crude oil in the coming period.
Thursday October 20:
The United States will start with the weekly jobless claims for the week ending October 14 at 12:30 GMT after last week they rose by 404 thousand.
At 14:00 GMT the September Leading Indicators are expected with a slightly drop to 0.2% from 0.3%. The Philadelphia Fed Index for October is expected to improve to -0.9 from -17.5 and finally Existing Home Sales for September are expected with 2.5% drop to 4.91 million from 5.03 million.
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