By FX Empire.com
Crude oil prices remained under pressure on Tuesday, where worse than expected growth data from China and mounting fears from the European debt crisis after Moody’s said it is reviewing France’s Aaa rating, continued to weigh down on confidence and pushed crude oil prices lower, however, the losses were limited one day ahead of the expiration of the November contract.
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. Moreover, the uncertainty that continues to surround the outlook of the European debt crisis could also put negative pressure on crude oil prices over the coming period. Traders will be eyeing the EIA report on Wednesday, which is expected to show that crude oil inventories rose last week.
Wednesday October 19:
TheUnited Statescontinues with the inflation data at 12:30 GMT with the Consumer Price Index for September. The CPI is expected to rise 0.3% on the month after 0.4% gain and on the year to hold at 3.8%, while Core CPI is expected to hold the monthly gain at 0.2% and on the year to rise slightly to 2.1% from 2.0%.
The data continues with the Housing Starts for September also at 12:30 GMT and expected to rise to 594 thousand from 571 thousand. Building Permits on the other end are expected with 2.4% drop to 610 thousand from 620 thousand.
At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending October 14, as it’s expected to show that inventories increased by 2.0 million barrels, compared with the prior week’s increase of 1.3 million barrels.
The final release for theUnited Stateson Wednesday will be the Fed’s Beige Book at 18:00 GMT.
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