The United States Oil Fund (USO) is approaching a resistance zone where oil prices previously peaked during periods of heightened geopolitical tension, specifically Iran fear. The fund's chart indicates the asset is currently very overbought, with the Relative Strength Index (RSI) reflecting this condition. Brent crude has crossed the $100 mark, a significant psychological level, driven by a reported U.S. military response involving the destruction of four tankers belonging to Iran following an attempted attack on U.S. warships.
Rising oil prices are contributing to inflation concerns and driving up Treasury yields. The article notes that the U.S. Treasury is set to announce the size of a long-term bond buyback tomorrow. Additionally, the Japanese yen is rising, prompting some funds to unwind a carry trade where capital was borrowed in Japan to invest in the U.S., particularly in artificial intelligence stocks. The USD-JPY exchange rate is currently trading at $153.46, having fallen from a high of $163.95 in late July.
In the technology sector, Apple Inc. is expected to launch a $2,000 foldable iPhone under new CEO Jon Ternus. The report highlights that Apple is years behind Samsung Electronics in the foldable phone market. Regarding early market flows, money is moving negatively into the Invesco QQQ Trust Series 1 and the SPDR S&P 500 ETF Trust, as well as into major Magnificent Seven constituents including Amazon, Alphabet, Nvidia, Tesla, and Apple.
