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WTI Slips Below $59 as Bearish Outlook Weighs on Global Markets | 2nd December 2025

WTI Breaks Lower WTI crude slid below $59 as bearish demand expectations weighed on global markets, pressuring energy-linked currencies and dampening risk sentiment. The pullback in oil also contributed to weakness in the CAD, while mixed flows across major currencies reflected shifting central bank expectations. Meanwhile, steady policy signals from China and profit-taking in precious metals kept broader market movements contained ahead of key U.S. data. WTI Crude Oil Forecast (WTI/USD) Current Price and Context WTI trades below $59.50, extending its decline as bearish demand expectations continue to dominate market sentiment. Traders remain cautious following OPEC+’s decision to halt supply hikes, which has failed to offset concerns over slowing global consumption. Key Drivers Geopolitical Risks: Limited geopolitical disruption keeps supply flows stable, adding pressure to prices. US Economic Data: Softening U.S. manufacturing and weak freight indicators reinforce demand worries. FOMC Outcome: Growing expectations for future Fed cuts weigh on USD but fail to lift oil due to demand-side fears. Trade Policy: No new tariff developments, leaving sentiment driven mainly by economic fundamentals. Monetary Policy: Looser policy expectations globally point to slower economic momentum, dampening energy demand. Technical Outlook Trend: Near-term trend remains bearish after failing to recover the $60 handle. Resistance: Immediate resistance sits at $59.80, followed by $60.50. Support: Key support emerges at $58.70, then $58.10. Forecast: WTI is likely to remain under pressure unless demand signals improve. Sentiment and Catalysts Market Sentiment: Traders remain cautious, with sentiment leaning bearish. Catalysts: U.S. inventory data and updated demand forecasts from global agencies. USD/CAD Forecast Current Price and Context USD/CAD trades near 1.4000, maintaining recovery momentum as lower oil prices continue to weigh on the Canadian Dollar. Despite broad dovish Fed bets, the pair remains supported by commodity-driven weakness in the CAD. Key Drivers Geopolitical Risks: Stable supply expectations reduce CAD support typically seen during geopolitical tensions. US Economic Data: Mixed U.S. indicators create two-way movement but still offer slight USD support. FOMC Outcome: Dovish Fed expectations limit upside but do not fully offset CAD softness. Trade Policy: No new U.S.–Canada trade shifts impacting the pair. Monetary Policy: BoC’s cautious stance contrasts with weakening oil, keeping CAD pressured. Technical Outlook Trend: Bias remains mildly bullish above the 1.3980 support region. Resistance: 1.4050 and 1.4100 remain upside barriers. Support: Key levels at 1.3980 and 1.3910. Forecast: USD/CAD may grind higher if oil remains under pressure. Sentiment and Catalysts Market Sentiment: Tilted in favor of the USD due to commodity weakness. Catalysts: Oil price movements and upcoming U.S. jobs data. Japanese Yen (USD/JPY) Forecast Current Price and Context USD/JPY moves higher as the Yen drifts away from its two-week high amid a positive risk tone. Improved sentiment in global equities reduces demand for safe-haven currencies, pressuring the JPY. Key Drivers Geopolitical Risks: Limited global tensions keep safe-haven demand subdued. US Economic Data: Stable U.S. data supports USD resilience. FOMC Outcome: Fed cut expectations cap USD upside but still allow moderate gains versus JPY. Trade Policy: No major trade developments impacting flows. Monetary Policy: BoJ maintains ultra-loose policy, leaving the Yen fundamentally softer. Technical Outlook Trend: Bias shifts bullish as USD/JPY rebounds from recent lows. Resistance: 152.40 and 153.00. Support: 151.60 and 151.00. Forecast: Pair may continue higher if risk appetite stays firm. Sentiment and Catalysts Market Sentiment: Risk-on sentiment weighs against JPY. Catalysts: BoJ commentary and U.S. treasury yields. Silver (XAG/USD) Forecast Current Price and Context Silver has slipped below $57.00 as profit-taking emerges after its record-breaking rally. The metal remains broadly bullish but vulnerable to short-term corrections. Key Drivers Geopolitical Risks: Stable geopolitical conditions reduce safe-haven inflows. US Economic Data: Modest U.S. improvements cool demand for defensive assets. FOMC Outcome: Dovish Fed expectations still support long-term metals strength. Trade Policy: No disruptions affecting industrial demand. Monetary Policy: Global easing expectations continue to underpin medium-term silver demand. Technical Outlook Trend: Short-term correction within a broader uptrend. Resistance: $57.60 and $58.25. Support: $56.30 and $55.80. Forecast: A pullback may stabilize before buyers attempt to retest highs. Sentiment and Catalysts Market Sentiment: Cautious but still broadly bullish. Catalysts: US yields, risk sentiment, and momentum signals. USD/CNY (PBOC Fix) Forecast Current Price and Context The PBOC set the USD/CNY reference rate at 7.0794, slightly higher than the previous fix, signaling steady but controlled CNY movement. The adjustment reflects Beijing’s aim to maintain stability amid global volatility. Key Drivers Geopolitical Risks: Limited tensions keep Beijing focused on economic stability rather than currency defense. US Economic Data: Mild U.S. strength supports USD levels. FOMC Outcome: Fed’s dovish stance limits strong USD gains but CNY remains guided by policy. Trade Policy: Stable U.S.–China trade relations reduce FX volatility. Monetary Policy: PBOC maintains accommodative but stable policy to support growth. Technical Outlook (for USD/CNY sentiment) Trend: Controlled upward bias within a managed band. Resistance:7.0860 and 7.0930. Support: 7.0710 and 7.0650. Forecast: The pair is likely to stay range-bound under PBOC guidance. Sentiment and Catalysts Market Sentiment: Neutral to moderately USD-favored. Catalysts: Chinese PMI data and PBOC liquidity operations. Wrap-up Oil’s decline remained the focal point of today’s session, reinforcing concerns over global demand and shaping movement across commodities and FX pairs. With traders awaiting fresh economic indicators and potential central bank cues, short-term volatility is likely to persist across WTI, metals, and major currencies as markets position for the next catalyst. Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!

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Publication date:

2025-12-02 08:03:24 (GMT)

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