(Bloomberg) — Oil is heading for the first weekly loss since late April in New York on fears a second wave of U.S. infections could derail a fragile recovery, while swelling stockpiles raised fresh concerns about excess supply.The market has shrugged off a pledge by OPEC+ over the weekend to extend its output cuts, with sentiment souring this week after U.S. inventories climbed to a record high and the Federal Reserve warned of longer-lasting damage to the economy by the pandemic. Oil has also been swept up in a broader market rout triggered by a surge in infections, with prices heading back below $35 a barrel.Crude has rallied since plunging below zero in April as production cuts trimmed a global glut and the easing of lockdowns boosted fuel consumption. However, the recovery is expected to be uneven, with Goldman Sachs Group Inc. this week turning bearish on oil in the short term due to poor returns from refining.While Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another jump in coronavirus cases, more than 2 million Americans have now been infected. Localized surges have raised concerns among experts even as the nation’s overall case count early this week rose just under 1%, the smallest increase since March.“The oil market has been overdue a pullback, with prices getting somewhat ahead of actual fundamentals,” said Warren Patterson head of commodities strategy at ING Bank NV in Singapore. “While the market is moving from a surplus to deficit environment, inventories remain at elevated levels and refinery margins are still very weak.”U.S. crude stockpiles unexpectedly expanded last week to 538.1 million barrels, the Energy Information Administration reported Wednesday, the highest level in data compiled by Bloomberg since 1982. The increase underlines the difficulty facing OPEC and its allies in their efforts to balance the market.Meanwhile, in a positive sign, demand in the U.K. has been steadily recovering in recent weeks, according to government data. Fuel consumption is now about 35% lower than pre-lockdown levels, compared with as much as 70% in April.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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EUR/USD Current Price: 1.1294 * Risk-aversion took over as the Fed sees a long path towards recovery. * US Initial Jobless Claims hit 1.54 million in the week ended June 5. * EUR/USD is losing its bullish stance and about to pierce the 1.1300 figure.The EUR/USD pair has spent this Thursday consolidating below 1.1400, falling to fresh daily lows by the end of the day below 1.1300 as risk-off dominated the financial scene. Following the US Federal Reserve monetary policy announcement on Wednesday, equities entered a selling spiral that continued throughout the different sessions. The fact that the Fed will maintain rates at current lows at least through the next two years, among other things, sounded the alarm on those thinking on a soon-to-come economic recovery. The dollar benefited to a different extent against its major rivals from this risk-averse sentiment.The macroeconomic calendar had little to offer, as there were no data releases coming from the EU. The US, on the other hand, published the Initial Jobless Claims for the week ended June 5, which were slightly better-than-expected, as 1.54 million Americans filed for unemployment. Continuing Jobless Claims, however, edged higher to roughly 21 million in the week ended May 29. This Friday, the EU will unveil April Industrial Production, seen down by 20% in the month, while the US will publish the preliminary estimate of the June Michigan Consumer Sentiment Index, foreseen at 75 from 72.3 in the previous month.EUR/USD short-term technical outlook The EUR/USD pair is trading below 1.1300 as the day comes to an end, losing its bullish stance. In the 4-hour chart, it has pierced a bullish 20 SMA, which continues advancing above also bullish larger moving averages. Technical indicators have turned south, the Momentum holding within positive levels, but the RSI already below its 50 line. The decline could extend once below the 1.1300 figure towards 1.1260, a more relevant support level.Support levels: 1.1260 1.1225 1.1170Resistance levels: 1.1310 1.1350 1.1390View Live Chart for the EUR/USDSee more from Benzinga * AUD/USD Forecast: Firmly Above 0.7000 And Heading Towards The 0.7100 Price Zone * EUR/USD Forecast: Nearing The Multi-Week High At 1.1384 * EUR/USD Forecast: Bulls Keep Buying On Dips(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Posted by OFX AUD – Australian Dollar The Australian dollar plunged through trade on Thursday as investors' appetite for risk soured, prompting a flight to haven assets. Having touched early morning highs just shy of 0.70 US cents the AUD came under sustained selling pressure throughout the day as investor optimism surrounding … Continue reading "Australian dollar plunges lower as uncertainty floods markets"The post Australian dollar plunges lower as uncertainty floods markets appeared first on .

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