US Crude oil eventually broke above $50 per barrel barrier and posted fresh 8-month highs on Wednesday, supported by data showing larger than expected draw in US crude inventories, strong Chinese demand and worries about disruption on Nigeria oil industry.
WTI oil reached session high at $50.55, while Brent oil peaked at $51.54.
US commercial crude inventories fell by 3.6 million barrels last week, compared to 2.7 million barrels draw forecast, API data showed.
The US Energy Information Administration (EIA) will release inventory numbers today at 14:30 GMT, with forecast for 3.2 million barrels draw in the past week, compared to previous release of 1.4 million barrels.

Commodity currencies followed strength of oil price, with Australian dollar posting one-month high against the US dollar at 0.7462, while Canadian dollar peaked at 1.2723, price last time traded at the beginning of May.
Gold was also supported on rise of commodity prices and weaker dollar and touched fresh two-week high at $1250, as possibility of early hike of US rates appeared to dim on dovish comments of Fed’s Chair Janet Yellen, earlier this week.
Gold recovered around 2.7% so far this month, after falling more than 6% in May.

The World Bank slashed its forecast for 2016 global growth on Wednesday to 2.4% from estimated 2.9% in January, due to low commodity prices, sluggish demand in advanced economies, diminishing capital flows and weak trade.
The World Bank lowered forecast for United States to 1.9% and to 1.6% for European Union, despite strong monetary policy support and a boost from lower commodity and energy prices.

The US dollar remains under pressure against the basket of major currencies, with Dollar Index hitting fresh 4-week low on Wednesday, on fading hopes of US rate hike soon.

Euro holds near fresh highs just under 1.1400 handle, while the greenback probed again below 107 yen support and Aussie continues to rally on unchanged RBA and higher commodity prices.
Sterling remains in a choppy mode, being driven by opposite results of polls about coming referendum and managed to recover from 3-week low, posted on Monday after strong acceleration lower. Near-term sentiment is slightly positive, however, high volatility and absence clear of bear-term direction could expected in coming sessions.

Today’s highlights

Data from China were highlight of the Asian session with trade balance less than expected. Data for May showed trade surplus of 50 billion dollar, below forecasted 58 billion, but still above April’s 45.5 billion dollars.
China’s Exports disappointed on fall by 4.1% in May, below -3.6% forecast and April’s -1.8% release. On the other side, Imports data were upbeat in May, as Imports dropped only by 0.4%, beating forecast of 6% fall and previous release that showed drop by 1.09% in April.
Highlight of the European session are UK Industrial and Manufacturing output data, due at 08:30GMT. Manufacturing Output is expected to stay unchanged at 0.1% in April, while Industrial Output is expected to ease after climbing by 0.3% in March.

From American session, Canada’s housing data and US Weekly Crude Stocks are the highlights.
Canada’s Housing Starts are expected to ease in May, with 190K forecasted against April’s 191.5K, while building permits are expected to rise by 1.5% in April after 7% fall in March.
Reserve Bank of New Zealand is due to deliver its rate policy later today. The Central Bank is expected to keep rates unchanged at 2.25% on today’s meeting, after surprise in March when it cut rates by 25 basis points.
Release is due at 21:00 GMT.
Important levels

EURUSD showed no significant changes from yesterday, still holding within near-term range, but the price moved closer to range’s upper boundary. Lift above strong 1.1391/1.1416 resistance zone would signal an end of consolidation phase and resume near-term bulls, supported by weaker dollar. Next barriers lay at 1.1445 and 1.1492, regain of which would open way towards key barrier at 1.1614.
Initial support levels lay at 1.1352 and 1.1324, while more significant support is at 1.1280, followed by 1.1240.
GBPUSD remains bullishly aligned after yesterday’s spike at 1.4655 and renewed attempt higher that peaked at 1.4607. Near-term price action consolidates around 1.4550, waiting UK data and fresh news about Brexit polls, which were pair’s main driver in recent days.
Initial resistance lays at 1.4607, followed by 1.4655 pivot and key 1.4722/37 barriers.
First support is at 1.4500 zone, followed by 1.4465 and 1.4420.

CRUDE OIL stabilizes above $ 50, after the third attempt to clear barrier. Firm bullish technicals support the notion, with daily close above $50 needed to signal bullish resumption. Rally approaches next strong resistance at $50.89, break of which could trigger fresh bullish acceleration towards $55 zone.
Broken $50 level now offers initial support, followed by $49.45 and $49.14, Daily Market Outlook, Market Analysis