Crude Oil Futures Settle Sharply Lower On Demand Worries

Trading 22 Avr 2021 Commentaire »

Crude oil futures declined sharply on Wednesday and settled at one-week low, amid rising concerns about outlook for energy demand due to rising coronavirus infections in India.

Data showing a jump in U.S. crude inventories weighed as well on oil prices.

Traders were also following the developments on the U.S.-Iran nuclear talks. According to reports, the U.S. might consider lifting terror sanctions against Iran's central bank, its national oil and tanker companies and several key economic sectors including steel, aluminum and others.

West Texas Intermediate Crude oil futures for June ended down $1.32 or about 2.1% at $61.35 a barrel, the lowest close since April 13.

Data released by the Energy Information Administration (EIA) Wednesday morning showed U.S. crude inventories rose by 594,000 barrels in the week to April 16 to 493 million barrels. Analysts had expected inventories to drop by about 3 million barrels.

The American Petroleum Institute (API) on Tuesday reported a build in crude oil inventories of 436,000 barrels for the week ending April 16, while analysts had predicted a draw of 2.860 million barrels for the week.

Another massive surge in new coronavirus infections in India has raised concerns about energy demand from the world's second most populous country. India is world's third biggest oil consumer.

According to data from India's health ministry on Wednesday, the country saw 295,000 new coronvirus cases in 24 hours.


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Gold Futures Settle At 2-month High

Trading 22 Avr 2021 Commentaire »

Gold prices moved higher on Wednesday, lifting the most active gold futures contract to a 2-month closing high.

The demand for the safe-haven asset increased as surging coronavirus cases in several countries raised concerns about the pace of economic recovery.

The dollar index, which rose to 91.43 in early New York session, slid to 91.09 by noon, supporting gold's uptick.

Gold futures for June ended higher by $14.70 or about 0.8% at $1,793.10 an ounce, the highest settlement since February 24.

Silver futures for May ended up $0.730 at $26.570 an ounce, while Copper futures for May settled at $4.2790 per pound, gaining $0.0660.

Investors now await the European Central Bank meeting on Thursday for further clarity about stimulus plans for the bloc.

A U.S. Federal Reserve policy meeting is due next week, with policymakers expected to stick with the super-easy monetary policy despite progress on the economy.

Fed Chair Jerome Powell said recently that a coming upswing in inflation readings is likely to be transitory and won't cause the U.S. central bank to change its monetary policy.


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Twenty-Year Bond Auction Attracts Modestly Above Average Demand

Trading 22 Avr 2021 Commentaire »

The Treasury Department on Wednesday announced the results of this month's auction of $24 billion worth of twenty-year bonds, with the sale attracting slightly above average demand.

The twenty-year bond auction drew a high yield of 2.144 percent and a bid-to-cover ratio of 2.42.

Last month, the Treasury also sold $24 billion worth of twenty-year bonds, drawing a high yield of 2.290 percent and a bid-to-cover ratio of 2.51.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.37.


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Canadian Dollar Rises After BoC Holds Rate Steady, Reduces QE Programme

Trading 21 Avr 2021 Commentaire »

The Canadian dollar appreciated against its major counterparts in the New York session on Wednesday, after the Bank of Canada left its key rate unchanged and trimmed its asset purchase programme reflecting the progress in the economic growth.

The BoC kept its key rate unchanged at 0.25 percent, as expected.

The BoC will reduce weekly net purchases of Government of Canada bonds to a target of C$3 billion from C$4 billion.

The economic growth in the first quarter appeared considerably stronger than the Bank's January forecast, as households and companies adapted to the second wave and associated restrictions, the bank said in the accompanying statement.

Inflation is expected to rise temporarily to around the top of the 1-3 percent inflation-control range in the coming months.

The BoC said that there is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support, even as economic prospects improve.

The bank remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved, it added.

The loonie spiked higher to 2-day highs of 1.5001 against the euro and 0.9660 against the aussie, after falling to a 1-1/2-month low of 1.5193 and near a 6-week low of 0.9759, respectively in early deals. The currency is seen finding resistance around 1.47 against the euro and 0.94 against the aussie.

The loonie rebounded from its early 1-1/2-month lows of 85.43 against the yen and 1.2654 against the greenback, rising to 86.66 and 1.2480, respectively. On the upside, 88.00 and 1.21 are likely seen as its next resistance levels against the yen and the greenback, respectively.


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*U.S. Crude Oil Inventories Inch Up By 0.6 Million Barrels In Week Ended 4/16

Trading 21 Avr 2021 Commentaire »

U.S. Crude Oil Inventories Inch Up By 0.6 Million Barrels In Week Ended 4/16


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*Canadian Dollar Hits 2-day High Of 0.9684 Against Australian Dollar

Trading 21 Avr 2021 Commentaire »

Canadian Dollar Hits 2-day High Of 0.9684 Against Australian Dollar


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*Canadian Dollar Rise To 1.5057 Against Euro, 86.24 Against Yen

Trading 21 Avr 2021 Commentaire »

Canadian Dollar Rise To 1.5057 Against Euro, 86.24 Against Yen


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*Canadian Dollar Firms To 1.2541 Against U.S. Dollar After BoC Decision

Trading 21 Avr 2021 Commentaire »

Canadian Dollar Firms To 1.2541 Against U.S. Dollar After BoC Decision


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Loonie Climbs After BoC Decision

Trading 21 Avr 2021 Commentaire »

As expected, the Bank of Canada maintained the benchmark rate at 0.25 percent. The loonie advanced against its major rivals after the decision.

The loonie was trading at 1.5100 against the euro, 86.05 against the yen, 0.9704 against the aussie and 1.2562 against the greenback around 10:04 am ET.


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*Bank Of Canada Leaves Rates Unchanged, Net Purchases Of Government Bonds Lowered To C$3 Bln Per Week

Trading 21 Avr 2021 Commentaire »

Bank Of Canada Leaves Rates Unchanged, Net Purchases Of Government Bonds Lowered To C$3 Bln Per Week


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