Oil approaches $79.00 on flexible Yuan

FXstreet.com (Barcelona) - Crude Oil for July delivery continued its relentless ascension towards higher levels and posted a rise beyond 2% compared to Friday's close. Renewed flows of heavy buying came in through the Asian session as investors cheered up a greater consent on a flexible Yuan by the People's Bank of China.

The news triggered a vigorous chain effect on worldwide oil demand growth expectations as crude rose passed a series of upside hurdles to encounter resistance at just under $79.00/barrel (highest level in June) At present, a minor downside correction sent the price to sit around $78.80 region.

The 23-month peg to the Dollar may represent significant benefits for Chinese imports on USD-denominated energy products, with oil consumption turning more attractive should the Yuan flow in a more indulgent fashion.

Forex: EUR/USD extends higher, hits prices above 1.2450

FXstreet.com (Barcelona) - The Euro has remained trading on the steady upside channel from 4-year low at 1.1875 on Jun 7, pushing higher on Asian session to reach levels right above 1.2450, 4-week high, with support at 1.2355/60.

On the upside, the pair might find resistance at 1.2455 (May 28 high), under pressure ahead of the European opening, with next resistance levels at 1.2480 (intra-day level) and 1.2520 (May 6 low). On the downside, immediate support lies at 1.2400/15 (intra-day support/Jun 18 high), and below here, 1.2365 session low) and 1.2340/50 (Jun 15/16 high/ intra-day support).

EUR/GBP attempted to break higher on Asian session opening, but capped at 0.8400, the pair has pulled back to session low at 0.8340 ahead of the European opening. On the bigger picture, the pair remains slightly bullish, with resistance levels at 0.8380/85 and 0.8400. On the downside, support levels lie at 0.8355 and 0.8310.