• Crude Oil edges up slightly after the sharp correction earlier this week. 
• Markets are rebalancing after the news that Saudi Arabia is giving up its price target of $100 per barrel and mulls an increase in output. 
• The US Dollar Index holds steady ahead of PCE inflation data for August. 

Crude Oil is bouncing off a substantial support level on Friday, consolidating the recent losses the commodity had to digest earlier in the week. Still, Oil is set to close the week in the red, weighed by news that Saudi Arabia – the world’s largest crude exporter – is letting loose on its $100 price target and is thinking about increasing production, The downturn seen this week could be seen as an adjustment to the additional supply that will likely be released to markets.  

The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, is consolidating ahead of the Personal Consumption Expenditures (PCE) Price Index data. With the release of this index, which is the Federal Reserve’s (Fed) preferred inflation gauge, markets will get another piece of the puzzle to work out how big the November interest-rate cut will be. Expect to see volatility pick up should PCE beats expectations.