By FX Empire.com
Crude oil prices rose on Monday amid optimism EU leaders will be able to craft a plan to ease the euro zone debt crisis, while better than expected growth in China’s manufacturing activities also supported confidence in markets and boosted demand for higher yielding assets, which provided crude oil prices with strong bullish momentum.
Nonetheless, gains were limited after data from Europe showed the euro zone manufacturing and services sectors contracted in October, which stopped crude oil prices from rising sharply.
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. Also, traders will continue to follow the developments from Europe, and whether EU leaders will be able to craft a plan to ease the EU debt crisis.
Tuesday October 25:
The S&P/CaseShiller house price index will be released for the month of August at 13:00 GMT, where the S&P/CS 20 city house price index is expected to rise by 0.15%, compared with the prior rise of 0.05%, while compared with a year earlier, the S&P/CS Composite-20 index is expected to decline by 3.55%, compared with the prior drop of 4.11%.
The U.S. Conference Board will release the consumer confidence index for October, where consumer confidence is expected to improve slightly to 46.0 from 45.4 back in September.
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