Crude Oil Prices May Fall as a Double Top Takes Shape

London (June 26)  Crude oil prices managed to recover a bit of lost ground Thursday as markets digested another round of risk-off liquidation. The lead-in selloff was triggered as easing lockdowns bring on a spike in Covid-19 cases, particularly in the US. Gold prices languished as the haven US Dollar held onto gains scored in risk-off trade, capping the appeal of anti-fiat alternatives.

Looking ahead, May’s US personal income and spending data headlines the calendar. A rebound in outlays after April’s double-digit drop is expected to be counterbalanced by the largest monthly earnings drop on record. The Fed’s favored PCE inflation gauge may show that core price growth slowed to 0.9 percent on year. That now seems hardly as influential on Fed policy, and thereby markets, as it has been in the past.

DailyFX